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

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, CEO Muneeb Ali estimated 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.

Currently, Blockstack’s revenue is almost entirely generated by the company’s token sales which results in lumpy top-line figures. In 1H19, Blockstack did not recognize any revenue. However, revenue for 2H19 will include the $23.2 million raised through the Reg A+ and Reg S offerings as well as any additional token offerings that take place before the end of the year (assuming the tokens are successfully delivered to investors).