Blockstream Raises $125 Million To Expand Mining Operations
- Blockstream, a Bitcoin miner and hosting company, raised $125 million via a financing round that included convertible notes and secured loans.
- At a time when other businesses in the sector are fighting to survive owing to a protracted downturn in mining economics, the company will utilize the funds to develop its institutional Bitcoin mining colocation services.
Encryption infrastructure company Blockstream has raised $125 million through convertible notes and secured loan financing, and the new funds will be used to expand its institutional Bitcoin mining hosting services.
This fund was utilized to build several enterprise-class mining facilities with the capacity for institutional hosting customers and to strengthen Blockstream’s vertical integration with the acquisition of Spondoolies to design and manufacture Blockstream’s own ASIC and enterprise miner.
Blockstream currently has over 500 MW of power capacity in the development pipeline. Its business also extends to hardware and L2 technologies such as Core Lightning.
According to previous news, Blockstream raised $210 million in Series B financing in 2021. This fund was utilized to build several enterprise-class mining facilities with the capacity for institutional hosting customers and to strengthen Blockstream’s vertical integration with the acquisition of Spondoolies to design and manufacture Blockstream’s own ASIC and enterprise miner.
Blockstream President & CFO Erik Svenson said in the statement:
“This fundraise allows us to accelerate the YoY revenue growth we created with our 2021 Series B and continue to build infrastructure for the future Bitcoin economy. 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.”
In December, Bloomberg reported that the company was seeking to raise new funding at a valuation 70% lower than its previous funding round (less than $1 billion).
In contrast to “prop” miners and their lenders, who have been more directly exposed to Bitcoin price volatility and tight margins, hosting has remained a robust market sector.
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