Blockstream has announced that it has raised $125 million in convertible notes and collateralized loan financing with the goal of expanding its institutional bitcoin mining services. The increase was led by Kingsway Capital along with other investors including Fulgur Ventures.
According to the advertisementBlockstream will use the capital raised to expand its bitcoin mining facilities “to meet strong demand for its institutional hosting services,” which they claim remains high “due to the company’s strong track record and substantial scale, along with an industry- extensive shortage of available power capacity.
This increase follows Blockstream’s $210 million raise from August 2021, which valued the company at $3.2 billion. The company used this earlier round to build several mining facilities with the capacity to house institutional clients, along with strengthening 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,” said 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 world’s most secure, robust, and scalable blockchain: Bitcoin.”
Blockstream CEO Dr. Adam Back stated that “with 2022 marked by multiple large-scale centralized party and protocol failures, we believe this has been a learning experience for the market – that the core value of blockchains is in reducing the need to rely on third parties.”
Blockstream is one of the world’s largest bitcoin mining operators, according to the statement, with more than 500 megawatts (MW) in its development pipeline. Blockstream is also a market leader in Layer 2 Bitcoin technologies such as Core Lightning (CLN) and Liquid Network.
