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Blockstream has announced that they have raised $125 million in convertible notes and secured loan financing with the aim of expanding their institutional bitcoin mining services. The increase was led by Kingsway Capital along with other investors including Fulgur Ventures.
According to the announcement, Blockstream will use the raised capital to expand their bitcoin mining facility “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, coupled with a shortage of power capacity. available throughout the industry.”
The increase follows Blockstream’s August 2021 hike of $210 million which valued the company at $3.2 billion. The company leveraged the previous round to build multiple mining facilities with capacity for institutional hosting customers, along with strengthening Blockstream’s vertical integration for ASIC manufacturing.
“This fundraiser will allow us to accelerate the YoY revenue growth we created with our 2021 Series B and continue to build the infrastructure for the future Bitcoin economy,” Erik Svenson, President and CFO of Blockstream, commented. “We remain focused on reducing the risk of 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’s CEO, 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 in reducing 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 development pipeline. Blockstream is also a market leader in Layer 2 Bitcoin technologies such as Core Lightning (CLN) and Liquid Network.
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