Blockstream raises $125 million to expand hosting services

The infrastructure company Blockstream announced that it had raised $125 million through a convertible note and secured loan.

We’re excited to announce that we’ve raised $125 million in convertible note and secured loan financing to expand our institutional #Bitcoin mining colocation services.https://t.co/WywXBTNnYb pic.twitter.com/Z0s2lTvp4W

— Blockstream (@Blockstream) January 25, 2023

The company will deploy the funds to expand capacity, ‘to meet strong demand for its hosting services’. The financing was provided by Kingsway Capital, Fulgur Ventures and other investors.

“Recent events in the cryptocurrency industry as a whole underline the value and importance of the work Blockstream is doing in both blockchain development and Bitcoin mining,” the press release said.

The firm also plans to broaden access to its cryptocurrency mining solutions powered by renewable energy and will continue developing its own ‘institutional-grade’ Bitcoin miner.

Blockstream president and CFO Eric Svenson said the company remains focused on reducing risk for enterprise users.

“We remain focused on reducing risk for institutional #Bitcoin miners and enabling enterprise users to build high-value use cases,”

— @e_svenson, Blockstream President and CFO

— Blockstream (@Blockstream) January 25, 2023

In the spring of 2021 Blockstream announced the issuance of security tokens, designed to give investors access to mining of the first cryptocurrency.

In August the company raised $120 million at a valuation of $3.2 billion. The Series B round was led by early investor Google and Tesla — Baillie Gifford, a Scottish asset manager. 

In the same year Blockstream placed the sixth tranche of hashrate-backed Bitcoin security tokens and brought the total raised through such instruments to €30.9 million (~$36 million at the rate at that time).

In April 2022, Tesla joined with Block, Jack Dorsey’s company, and Blockstream to build a solar-powered Bitcoin mining data centre.

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