Blockstream, a leading bitcoin infrastructure provider, announced on January 24 that it had raised $125 million in funding to expand its institutional bitcoin mining services.
This fundraising was led by Kingsway Capital, a UK-based private equity fund, and included participation from other investors such as Fulgur Ventures and Cohen & Company Capital Markets.
This is the first funding round for Blockstream since its 2021 Series B round, where the company raised $210 million to accelerate the construction of enterprise-class mining facilities with hosting capabilities for institutional clients. Following this round of funding, Blockstream reached a valuation of $3.2 billion.
Blockstream points to institutional Bitcoin mining services.
The company has seen increased demand for its hosting services due to its strong track record and substantial size, as well as an industry-wide shortage of available power capacity. This hosting service has remained a resilient market segment compared to “prop” miners, who have seen their operations impacted by volatility in bitcoin prices and the crypto market.
Erik Svenson, Chairman and Chief Financial Officer of Blockstream, said the new fundraising will allow the company to accelerate year-over-year revenue growth and continue to build better infrastructure that contributes to the economic future of Blockstream. Bitcoin.
Svenson highlighted the company’s focus on “reducing risk for institutional miners” by creating high-value use cases on the most secure blockchain on the planet, bitcoin.
2022: the year we learn not to rely on centralized projects
Adam Back, CEO of Blockstream, said that 2022 was a learning year for the market, referring to the many project failures and scams that caused massive money losses and the closure of several crypto companies. He thinks these bad experiences should serve as a learning opportunity to “reduce the need to depend on others”.
He encouraged players in the crypto ecosystem to move to decentralized structures and bitcoin-based non-custodial architectures, such as Liquid’s single contracts, in order to have full custody of their funds.
Back also pointed out that Liquid’s Simple Contracts enable self-custody for active traders via offline limit orders, non-custodial options and collateralized lending, all from the safety of the client’s own hardware wallet. merchant protected by his own keys. This technology is compatible with decentralized and centralized order book exchanges.
Additionally, recent market failures and scams are a reminder of the importance of decentralization and self-custody in the crypto ecosystem.
While 2022 has been a year full of bad experiences for many crypto ecosystem enthusiasts, it has undoubtedly served as a learning experience for the crypto community to understand that there will always be malicious actors out there. hide to take advantage of innocent and experienced people.
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