Crypto infrastructure firm Blockstream raises $125 million to expand mining services

Quick Take

  • Bitcoin miner and hosting provider Blockstream raised $125 million in a convertible note and secured loan financing round.

Bitcoin miner and hosting provider Blockstream raised $125 million in a convertible note and secured loan financing round.

The company will use the money to expand its institutional bitcoin mining colocation services at a time when others in the industry are struggling to keep afloat due to a prolonged decline in mining economics.

"Demand for Blockstream’s hosting services remains high due to the company’s strong track record and substantial scale, coupled with an industry-wide shortage of available power capacity," the company said in a statement.

Blockstream currently has over 500 megawatts in its development pipeline. Its business also extends to hardware and Layer-2 technologies like Core Lightning.

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The demise of large-scale centralized parties and protocols in the past year and "resulting refocus on security and decentralization presents an opportunity for market participants to move to Bitcoin-based non-custodial architectures," CEO Adam Back said. 

The company had already raised $210 million in a series B round in 2021. In December, Bloomberg reported that it was looking for fresh funds at a significantly lower valuation than before.


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About Author

Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).

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