- Blockstream will use the $210 million debt funding to boost adoption of its layer-2 solutions
- The company will also utilise the funds to add to its mining operations and treasury.
Blockstream, a Bitcoin infrastructure company founded by industry OG Adam Back, has announced it raised $210 million to fund various aspects of the company’s business.
Firm eyes L2 growth, mining and Bitcoin treasury
Blockstream said in a press release on Oct. 15 that the convertible note round, led by venture capital firm Fulgur Ventures, will help to fast-track the adoption of its layer-2 platforms. Blockstream will also use part of the funding to boost its mining operations ahead of “the next Bitcoin market cycle.”
In August 2023, the firm raised $125 million that it used to expand its mining as the market looked to the 2024 Bitcoin halving that happened in April.
Blockstream has closed a $210M convertible note financing round led by @FulgurVentures, driving our mission to bring Bitcoin into global finance.
This capital accelerates layer-2 development, expands mining ahead of the next Bitcoin cycle, and grows one of the world’s largest… pic.twitter.com/gi1ov0LCYU
— Blockstream (@Blockstream) October 15, 2024
As well as the L2 initiatives, which includes the Liquid Network sidechain launched in 2018, Blockstream is eyeing further growth by using the funding to purchase more BTC. The company is one of the largest holders of Bitcoin.
“This latest fundraise represents a defining moment for Blockstream as we embark on a critical new phase of growth to further bridge the gap between Bitcoin and the wider world of finance,” said Blockstream co-founder and CEO Adam Back.
As well as the debt funding, Blockstream announced that it had expanded its leadership with a new appointment. Michael Minkevich will now steer the company’s next growth phase as the chief operations officer. The new COO formerly worked at publicly-traded firm Luxoft as a product engineer lead.
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Bitcoin infrastructure firm Blockstream has closed a $210 million Series B funding round to enter the aggressively growing crypto unicorn club. Blockstream’s valuation grew to $3.2 billion. The funding round saw participation from iFinex, the parent company of Tether and Bitfinex along with Scotland-based investment firm Baillie Gifford.
The Bitcoin infrastructure provider aims to expand its ASIC mining infrastructure and build new products for the crypto market using the newly raised capital. The latest funding round also comes along with the acquisition of Israeli Bitcoin mining hardware manufacturer Spondoolies. The firm would join Blockstream in developing its ASIC mining arm.
Blockstream CSO Samson Now said the company is working towards the next leg of expansion which will include Bitcoin mining products and financial solutions. He explained,
“we’re kind of like blending the worlds of finance and industrial Bitcoin mining right now, but the financial aspect of our company is going to grow,” said Mow. “We’re going to have hedge fund-type products like alpha funds, essentially, Bitcoin alpha funds, and US dollar alpha funds, and other innovative things that we can’t mention now.”
Blockstream Branded Miners to Hit Market by Next Year
Blockstream aims to expand its Series B funding round further and collect nearly $300-$400 million. The latest funding round comes nearly after five years of Series A funding round. Mow mentioned that they have been a true Bitcoin company for longer than anyone else. He mentioned that the firm holds Bitcoin on its balance sheet well before MicroStrategy. He also claimed the reason behind such a big gap between the first and second funding round was mainly because they didn’t need those additional funds.
Adam Back, the CEO of the company said he expects Blockstream branded miners to hit the market by the third quarter of 2022. He said,
“We actually expect to have Blockstream-branded miners in the market in Q3 next year,”
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