Blockstream raises $210 million at a $3.2 billion valuation

Blockstream, an infrastructure company, raised $210 million in a Series B round, securing unicorn status with a $3.2 billion valuation.

We’re excited to announce that we’ve raised $210 million as part of our Series B financing on a valuation of $3.2 billion, led by @BaillieGifford and @Bitfinex, to continue our mission building financial infrastructure on #Bitcoin. https://t.co/bIxLTrRp1F pic.twitter.com/7SL2AmGGmd

— Blockstream (@Blockstream) August 24, 2021

Blockstream, an infrastructure company, raised $210 million in a Series B round, securing unicorn status with a $3.2 billion valuation. The round was led by Baillie Gifford, the Scottish asset manager that was an early investor in Google and Tesla. Blockstream was also backed by iFinex, the parent company of Bitfinex and Tether. No other investors were named.

Under the terms of the deal, Baillie Gifford investment manager Allen Firrington will join Blockstream’s board of directors as an observer.

Part of the funds will go toward advancing and expanding products and services aimed at Bitcoin mining, such as Blockstream Energy. The firm plans to use the infrastructure it builds for mining cryptocurrency in partnership with third parties, for example, with Square.

Together with the latter, the company is pursuing a project aimed at mining digital gold with solar energy.

The remaining investments are used to create a Bitcoin-based ecosystem of financial products around the Liquid Network sidechain Liquid Network, developed by Blockstream.

“So, we’re blending the financial and industrial sides of Bitcoin mining, but the financial aspect of the company will develop. We plan to launch products similar to hedge funds,” Blockstream’s Chief Strategy Officer Samson Mow said in an interview with BetaKit.

He noted that in the Series B the company intends to raise $300–400 million. According to him, Blockstream will raise additional funding soon.

The company also announced the acquisition of Israeli ASIC equipment maker Spondoolies. The deal includes the purchase of intellectual property and staff; the price was not disclosed.

“Blockstream is bringing the core team of Spondoolies on board and acquiring the corresponding IP, to launch the first enterprise-class miner next year,” said the company’s CEO Adam Back.

According to Mow, the company will use part of the funding to expand mining operations and bring online new facilities. He called the process “very capital-intensive.” Currently, the company operates data centers in Quebec, Canada, and Georgia, USA.

In March, Blockstream announced the release of security tokens designed to give investors access to Bitcoin mining.

In May, the company announced the acquisition of Adamant Capital, the cryptocurrency fund founded by Bitcoin maximalist Tuur Demeester.

Follow ForkLog News on VK.