Blockchain infrastructure company Blockstream is seeking new funding at a lower valuation as the market is struggling with crisis, Bloomberg has learned.
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The Canada-based company is reportedly raising fresh funds at a valuation below $1 billion, which is far from $3.2 billion, when the company raised $210 million in 2021, people close to the matter say. Blockstream hasn't made any public comments regarding the number though.
Blockstream Founder and CEO, Adam Back, told Bloomberg that the company plans to use the new capital to expand capacity to host crypto mining rigs:
"We rapidly sold out all of the capacity and have a big backlog of existing and new customers with miners seeking large-scale hosting with us."
It is unclear when Blockstream plans to announce the closure of the new funding as the valuation still may change given that the company is still in talks with investors.
In August 2021, raised capital in a Series B funding round led by Baillie Gifford and iFinex, the operator of Bitfinex. Blockstream said then it would use the proceeds to accelerate bitcoin (EXANTE: Bitcoin) mining efforts.
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