Layer 2s and Scaling
October 9, 2019, 7:12AM EDT
• 3 min read

Blockstack 2Q19 update: Estimated runway until 'end of 2021 or more' seems unlikely given rapidly growing expenses

Matthew Yamamoto

Quick Take

  • Blockstack released 1H19 financials which showed core operating expenses increased by 40% from 2H18 to $10.2 million
  • Management believes its $7.5 million in working capital coupled with the $23.2 million raised through its Reg A+ and Reg S offerings will give it runway until “the end of 2021 or more”
  • Given management’s expectations of continued expense growth moving forward, their runway estimate seems extremely aggressive
  • Future sources of funds will come from either equity/debt financing or additional token sales, with the latter leading to dilution for token holders

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