Blockstream announced that it has raised $125 million in convertible notes and secured loan funding to expand its institutional bitcoin mining services. The raise was led by Kingsway Capital along with other investors including Fulgur Ventures.
According to announcementBlockstream will use the capital raised to expand its bitcoin mining facilities “to meet strong demand for its institutional hosting services,” which they say remains high “due to the company’s strong track record and its substantial scale, coupled with an industry-wide shortage of available power capacity.
This increase follows that of Blockstream Increase August 2021 of $210 million which valued the company at $3.2 billion. The company has used this previous round to build multiple mining facilities with the capacity to accommodate institutional clients, as well as building Blockstream’s vertical integration for ASIC manufacturing.
“This fundraising allows us to accelerate the year-over-year revenue growth we created with our 2021 Series B and continue to build infrastructure for the future Bitcoin economy,” commented Erik Svenson, President and CFO of Blockstream. “We remain focused on reducing risk for institutional bitcoin miners and enabling enterprise users to build high-value use cases on the most secure, robust and scalable blockchain. in the world – Bitcoin.”
Blockstream CEO Dr. Adam Back said, “With 2022 punctuated by multiple centralized large-scale party and protocol failures, we believe this has been a learning experience for the market: that the The fundamental value of blockchains is to reduce the need to trust. third “.
Blockstream is one of the largest bitcoin mining operators in the world, according to the release, with over 500 megawatts (MW) in its development pipeline. Blockstream is also a market leader in Bitcoin Layer 2 technologies such as Core Lightning (CLN) and Liquid Network.