Blockstream has successfully raised $125 million to expand its presence in Bitcoin.BTC) mining market, which has seen its top players struggle to maintain their position. The company is investing in expanding its hosting services and infrastructure.
Blockstream President and Chief Financial Officer Eric Swenson said that Blockstream can continue to build the infrastructure for the Bitcoin economy in the future and that this fundraising will build on the year-over-year revenue it built with its 2021 Series B. Can accelerate growth, which helps them. Accelerate this development.
The last funding round of $210 million took place in August 2021, at a time when the market was approaching its all-time high market value of more than $3 trillion. These funds were used to build mining facilities for hosting services. As part of these services, customers hire firm-owned ASICs to mine Bitcoin for a specified period of time. Funds raised in 2023 will be used for the same purpose.
The press release reads:
“Demand for Blockstream’s hosting services remains high due to the company’s impressive track record and large size, as well as the lack of accessible electricity capacity in the industry.”
Blockstream stands strong despite market turmoil.
Blockstream is one of the world’s largest mining operators, and the company has a 500 megawatt development pipeline. Competing businesses, e.g Basic scientificOne of the largest publicly listed miners in North America, declared bankruptcy in December after selling nearly all of its bitcoin holdings and being unable to pay its debts. Core Scientific is, at this time, the subject of an investigation for possible involvement in securities fraud.
Iris Energy found itself in a similar situation. As a result, the company reduced the amount of bitcoin it mined in May to pay off the collateral it took out for mining equipment in November.
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