Cryptocurrency mining and infrastructure provider Blockstream says it has successfully raised $125 million.
This amount is called through bond issuance and borrowing from BlockStream. The company previously in August 2021 raised capital up to 210 million USD, at a valuation of up to 3.2 billion USD. BlockStream did not announce the valuation of the company in the new funding round, but the possibility is much lower when the cryptocurrency market in the past 1 year has continuously declined.
The newly raised money will be used by BlockStream to expand its cryptocurrency mining service to organizations in need. The company revealed that it has the ability to provide 500 megawatts of power for its mining support service, with revenue in 2022 increasing 3 times compared to 2021.
We’re excited to announce that we’ve raised $125 million in convertible note and secured loan financing to expand our institutional #Bitcoin mining colocation services.https://t.co/WywXBTNNnYb pic.twitter.com/Z0s2lTvp4W
— Blockstream (@Blockstream) January 25, 2023
The company said:
“Demand for Blockstream’s hosting service is still high thanks to the company’s stable operation history and large scale, as well as the lack of electricity in the market.”
The Bitcoin mining industry in the past time has continuously witnessed the giants Core Scientific, Argo Blockchain, Riot Blockchain, etc., falling into difficulties, forced to sell most of the BTC mined in 2022 and even declared bankruptcy. produce.
However, BlockStream is still optimistic about the potential of this market in the near future. CEO Adam Back said:
“The collapse of many highly centralized projects and organizations in the past year, resulting in an increased focus back on security and decentralization, has provided an opportunity for stakeholders to the market moves to non-custodial Bitcoin services.”
January 2023 also did not see many big fundraising deals like in the early 2022 period, instead, there were new and small projects calling for seed / private rounds with “modest” amounts. Interested readers can see more fundraising list here.
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