Bitcoin (EXANTE: Bitcoin) infrastructure provider Blockstream has raised $125 million in convertible notes to expand its mining services for institutional investors.
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The Canadian company said in a press release that venture firm Kingsway Capital led the funding round alongside other investors, including Fulgur Ventures. With the new funding, Blockstream will double down on its mining facilities in order to "meet the strong demand for its institutional hosting services."
"Hosting has remained a resilient market segment as compared with “prop” miners (and their lenders) who have been more directly exposed to bitcoin price volatility and compressed margins," the company said.
Blockstream CEO, Adam Back, acknowledged that although 2022 was surrounded by multiple large scale "centralized party and protocol failures," the company considers the wave of bankruptcies as a "learning experience for the market."
In December last year, reports said that Blockstream was seeking new money at a lower valuation as the market is struggling with crisis. According to reports, Blocksteam's valuation with the latest funding might be below $1 billion, which is far from $3.2 billion, when the company raised $210 million in 2021.
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