According to CEO Adam Back, the new funds will be used to increase the company’s mining capacity.
Bear market conditions aren’t ideal for raising capital, but that hasn’t stopped Blockstream.
According to a Bloomberg report from the 7th of December, the crypto infrastructure company is looking for new funding at a significantly lower valuation than previous rounds.
In August of 2021, Blockstream raised $210 million during a Series B funding round at a valuation of $3.2 billion. According to the report, that valuation may now be 70% lower, at less than $1 billion.
According to CrunchBase, since its inception in 2014, the company has received $299 million in funding across four separate funding rounds.
Adam Back, CEO and chief cryptographer at Blockstream did not disclose the specifics of the most recent funding round, but he did say that the money would be used to increase the company’s mining capabilities.
We quickly reached capacity, and now we’re experiencing a significant influx of new and returning customers who want to host large-scale mining operations with us.
The company is developing a solar-powered Bitcoin mining facility in partnership with Jack Dorsey’s Block (formerly Square). With Tesla’s solar technology and its Lithium-ion 12 MWh ‘Megapack,’ the mining farm will have 3.8 MW of electrical capacity, as reported by Cointelegraph in April.
Back said, “hosting rates have risen over the last quarters and our mining services are a rapidly expanding, high-margin enterprise business for us,” despite the fact that BTC prices and mining profitability have dropped.
High hash rates and difficulty, expensive electricity costs, and low Bitcoin prices are all bad news for Bitcoin miners right now. According to Hashrate Index, this has led to profitability hitting near-record lows at around $0.064 per TH/s per day.
On Dec. 5th, Blockstream announced in its monthly newsletter that the BMN token holders have earned approximately 5.37 BTC in returns so far, halfway through the token’s three-year term.
BMN is a security token that complies with EU regulations and gives accredited investors a stake in the company’s Bitcoin hash rate at its U.S. data center for industrial-strength mining.
Additionally, the company has been advertising a new limited edition ‘Jade Transparent’ hardware wallet with the slogan “holding our Bitcoin into the 2090s and beyond.”
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