Blockstream, a leading provider of Bitcoin infrastructure, has announced that it would extend its institutional bitcoin mining colocation services by raising $125 million in a convertible note and secured loan financing. Along with Fulgur Ventures and other investors, Kingsway Capital served as the convertible note’s lead investor.
About Funding
This funding closely follows Blockstream‘s $210 million Series B capital raise from August 2021, which was used to fund the construction of several enterprise-class mining facilities with capacity for institutional hosting customers and to strengthen Blockstream‘s vertical integration through the acquisition of Spondoolies for the development of its ASIC and enterprise miner.
The company will use the fresh funding, including its first debt financing, to expand mining facilities in order to fulfill the high demand for its institutional hosting services, which is expected to continue growing year over year in 2022. Due to the company’s solid reputation and large scale, as well as a general shortage of power capacity in the market, demand for Blockstream‘s hosting services continues to be very high.
“This fundraise allows us to accelerate the YoY 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.” – Blockstream President & CFO, Erik Svenson
About Blockstream
Blockstream was established in 2014 and has offices and team members all over the world. It is the industry pioneer in terms of blockchain and Bitcoin infrastructure. Platform’s sidechain technology (Liquid Network) permits secure, dependable smart contracts and trustless Bitcoin swap settlements while enabling financial institutions to tokenize assets.
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