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 round 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 fundraiser for Blockstream since its 2021 Series B round, where the company raised $210 million to accelerate construction of enterprise-class mining facilities with hosting capabilities for institutional clients. After that funding round, Blockstream achieved a valuation of $3.2 billion.

Blockstream Points for Institutional Bitcoin Mining Services.

The company has seen increased demand for its hosting services due to its strong track record and substantial scale, as well as a shortage of available power capacity across the industry. This hosting service has remained a resilient market segment compared to “prop” miners, who have seen their operations affected by the volatility of bitcoin prices and the crypto market.

Erik Svenson, Blockstream’s president and chief financial officer, said this new fundraising would allow the company to accelerate year-over-year revenue growth and continue to build better infrastructure that contributes to Bitcoin’s economic future.

Svenson emphasized 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 depend on centralized projects

Adam Back, CEO of Blockstream, said that 2022 was a learning year for the market, citing the numerous failed projects and scams that caused massive losses of money and the closure of multiple cryptocurrency companies. He believes that these bad experiences should serve as a learning opportunity to “reduce the need to rely on third parties.”

He encouraged players in the crypto ecosystem to move to decentralized structures and non-custodial bitcoin-based architectures, such as Liquid simple contracts, to have full custody of their funds.

Back also noted that Liquid’s simple contracts allow self-custody for active traders through offline limit orders, non-custodial options, and collateralized lending, all from the safety of the trader’s own hardware wallet protected by their own keys. . This technology supports decentralized and centralized order book exchanges.

Also, recent market failures and scams are reminders of the importance of decentralization and self-custody in the crypto ecosystem.

While 2022 was a year full of bad experiences for many crypto ecosystem enthusiasts, it certainly served as a learning experience for the crypto community to understand that there will always be malicious actors on the prowl to take advantage of innocent—and experienced—people.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).

PrimeXBT Special Offer – Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.



This post Blockstream raises $125 million to expand institutional Bitcoin mining services

was published first on https://cryptopotato.com/blockstream-raises-125-million-to-expand-institutional-bitcoin-mining-services/

Author

Write A Comment