• Blockstream and its founder Adam Back have raised $125 million to increase its Bitcoin (BTC) mining capacity.
• The capital was raised in a convertible note led by Kingsway Capital and Cohen & Company Capital Markets, a division of J.V.B. Financial Group.
• The funds will be used to expand Blockstream’s facilities and host institutional services due to increased demand.
Blockchain infrastructure firm Blockstream and its founder Adam Back have recently raised $125 million to increase its Bitcoin (BTC) mining capacity. The capital was raised in a form of short-term debt known as a convertible note. The note was led by Kingsway Capital and Cohen & Company Capital Markets, a division of J.V.B. Financial Group. The first of these companies will serve as advisors for the firm.
The funds will be used to expand Blockstream’s facilities and host institutional services due to increased demand. The firm has noted an uptick in demand from its clients, despite the crypto winter and the collapse of the crypto exchange FTX. This is most likely due to the company’s strong track record and substantial scale, coupled with an industry-wide shortage of available power capacity.
Previously, Blockstream raised $210 million in a Series B funding round led by Baillie Gifford and iFinex, Bitfinex’s operator, at a $3.2 billion valuation. This capital was used to accelerate Blockstream’s mining capabilities and attract new clients.
Blockstream is now positioned to grow even more and become an even more influential force in the world of blockchain technology. The firm’s CEO, Adam Back, has stated that the funds will be used to continue to build out the firm’s mining operations and increase its data center footprint.
The firm will also use the funds to invest in new tools and services that will make it easier for clients to engage in Bitcoin mining. This will help to further legitimize and institutionalize the industry, creating more opportunities for investors.
As the blockchain industry continues to grow, Blockstream is likely to remain an important player. Its ability to attract capital and develop new tools and services will help to ensure its continued success. With the recent influx of capital, Blockstream is well-positioned to continue to be a major player in the industry.