Blockstream announced it has raised $125 million in convertible notes and secured loan financing with the goal of expanding its institutional bitcoin mining service. The raise was led by Kingsway Capital along with other investors including Fulgur Ventures.
According to the announcement, Blockstream will use the raised capital to expand its bitcoin mining facilities “in order to meet the strong demand for institutional hosting services,” which it claims remains high “due to its strong track record and large size, added. with a lack of capacity power available in the industry.”
This increase follows Blockstream’s August 2021 $210 million raise that valued the company at $3.2 billion. The company used the previous round to build several mining facilities with capacity for institutional hosting customers, along with the strengthening of Blockstream’s vertical integration for ASIC manufacturers.
“This fundraising allows us to accelerate the YoY revenue growth we generated with the 2021 Series B and continue to build the infrastructure for the Bitcoin economy of the future,” commented Erik Svenson, Blockstream’s President and CFO. “We remain focused on reducing risk for institutional bitcoin miners and enabling enterprise users to create high-value use cases on the world’s most secure, powerful, and scalable blockchain – Bitcoin.”
CEO Blockstream, Dr. Adam Back, stated that “With 2022 punctuated by many large-scale centralized parties and protocol failures, we believe this has been a learning experience for the market: that the fundamental value of blockchain is to reduce the need to trust third parties.”
Blockstream is one of the world’s largest bitcoin mining operators, according to the release, with more than 500 megawatts (MW) in its development pipeline. Blockstream is also the market leader in Bitcoin Layer 2 technologies like Core Lightning (CLN) and Liquid Network.