Following the completion of Blockstack’s Reg A+ and Reg S offerings, the company recently released its financials for 1H19. Notably, core operating expenses grew by 40% from 2H18 as the company adds new personnel and increases marketing spend. As noted in The Block’s last report on Blockstack, Muneeb estimates that the company has enough runway to last until “the end of 2021 or more.” However, it’s uncertain how this will be obtainable given management’s guidance of even higher expenses in the latter half of the year coupled with no real method of generating revenue outside of future token sales.
1H19 financials and guidance
Source: Blockstack PBC, The Block
Currently, Blockstack’s revenue is almost entirely generated by the company’s token sales which results in lumpy top-line figures.