Blockstream Raises $125 Million to Expand Institutional Bitcoin Mining Services
January 26, 2023
Blockstream raised $125 million to expand institutional bitcoin mining services, and CEO Adam Back vowed to adopt decentralized structures.
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 fundraising 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 that round of financing, Blockstream reached a $3.2 billion valuation.
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 scale, 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 bitcoin’s price volatility and the crypto market.
Erik Svenson, Blockstream’s President & CFO, said that this new fundraising would allow the company to accelerate its YoY revenue growth and continue building better infrastructure that contributes to the economic future of Bitcoin.