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Digital asset infrastructure company Blockstream has secured $125 million in funding to expand its Bitcoin mining facility.
Blockstream is funded by convertible bonds and secured loans, and the company has announced A press release on Tuesday added that the company plans to use the funds to expand its mining facility as demand for its large-scale hosting services increases. The statement read:
“Building on strong year-over-year revenue growth in 2022, Blockstream will use its newly raised capital, including its initial debt financing, to meet strong demand for institutional hosting services. We are expanding our facilities.”
The crypto infrastructure company said demand for its hosting services remains high due to Blockstream’s “strong track record and considerable scale, plus an industry-wide shortage of available power capacity.”
Previously, Blockstream raised $200 million in a Series B funding round aimed at building a mining facility with capacity for institutional hosting customers in August 2021, when cryptocurrency prices were near all-time highs. Raised $10 million. At the time, the company was valued at $3.2 billion. The company’s Series A round was completed in 2016.
Blockstream says hosting is still a resilient market despite the recent cryptocurrency meltdown, which saw prices of almost all digital assets, including Bitcoin, plunge about 70% compared to all-time highs. said.
On the other hand, proportional (PROP) miners, a system that rewards miners based on their work from discovering one block to the next, are directly exposed to Bitcoin price fluctuations and compressed margins. have been hit harder because
Blockstream President and Chief Financial Officer Erik Svenson said:
As reported, Bitcoin block mining difficulty, a measure of how difficult a Bitcoin block is to be mined, increased by about 10% during the latest adjustment.
Overall, 2022 was the worst year ever for mining. One of his largest bitcoin mining companies, Core Scientific, filed for bankruptcy last December amid plummeting cryptocurrency prices and skyrocketing energy costs.
Cryptocurrency mining companies other than Core Scientific have also struggled amid the market downturn. Argo Blockchain, Iris Energy and Greenidge Generation are among the most prominent Bitcoin mining companies facing financial trouble.
Bitcoin mining companies to watch out for sold Nearly 100% of mined BTC in 2022 was used to survive. About 40,300 of the 40,700 BTC mined by 10 public bitcoin mining companies last year were sold, according to Tom Dunleavy, a senior research analyst at blockchain research firm Messari.
