Blockstream Raises $125M to Expand Bitcoin Mining Ops

Blockstream, a cryptocurrency infrastructure business, obtained $125 million in convertible note and secured loan funding to expand its bitcoin mining hosting services.

The business, which received $210 million in August at a $3.2 billion valuation, said in a news release Tuesday that the cash will be used to expand its mining facilities to fulfill growing demand for large-scale hosting services.

The valuation of Blockstream was not mentioned in the company’s fresh investment round. However, it was reported on December 7 that the business is looking to raise financing at a 70% lower valuation than its previous round, around $1 billion.

The statement read:

“Hosting has remained a resilient market segment as compared with ‘prop’ miners (and their lenders) who have been more directly exposed to bitcoin price volatility and compressed margins.”

Blockstream was created in 2014 with the intention of developing infrastructure and apps based on the Bitcoin network. CEO Adam Back (creator of Hashcash, a technology for deterring spam emails that informed Satoshi Nakamoto’s proof-of-work consensus mechanism design for Bitcoin) and nine others co-founded the company.

Blockstream President and Chief Financial Officer, Erik Svenson, said”

“This fundraise 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. 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.”