trade now
(BTC) Bitcoin News TodayBitcoin TrendsBlockchainCryptocurrencyCryptocurrency MiningCryptocurrency RegulationCryptocurrency SecuritiesCryptocurrency TrendsFinanceNews

Blockstream Nets $125 Million in Funding Round to Expand Bitcoin Mining

Bitcoin tech firm Blockstream announced the closure of a funding round that raised $125 million. The tech firm clarified to deploy additional capital to expand hosting services for bitcoin mining

The firm’s successful fundraising defied the odds as top bitcoin miners have admitted struggling to sustain afloat. A substantial number led by Core Scientific filed for bankruptcy, citing the liquidity crisis attributed to the crypto market meltdown. 

Blockstream Successful Funding Round

Bitcoin mining involves the process of incentivizing crypto users to safeguard the blockchain. As such, the mining firms leverage special energy-intensive equipment in constructing Bitcoin’s block. The block earns the miner a fixed 6.25 BTC. 

Blockstream illustrated that the decline in Bitcoin’s value eroded the dollar-denominated revenue generated by the mining firms. The downtrend in Bitcoin price weeds out all miners except for cost-efficient players from the sector. With the latest rally in Bitcoin price to $23000, average mining firms can run operations at a profit.

📰  UAE Investor Groups Establish Billion-Dollar Fund For Web3 Development

Accelerating Bitcoin Mining Infrastructure

Blockstream chief finance officer Erick Svenson lauded the fundraising to enable the mining company to accelerate annual revenue growth since the 2021 Series B. He added that the additional capital would facilitate the construction of infrastructure that will deliver the future Bitcoin economy.  

Svenson indicated that Blockstream realized $210 million in the round concluded in August 2021. The executive indicated that the fundraiser coincided with a huge increment in crypto prices that yielded the highest market capitalization of $3 trillion. The chief finance officer explained allocating the money to building facilities for hosting services. It allowed clients to rent its ASICs and earn BTCs for a defined time. He restated the January 24 fundraising proceeds to help fund a similar purpose. 

The firm revealed experiencing increased demand for its hosting services owing to its reputable performance. Also, Blockstream has an unmatched scale at a time when the industry is suffering strained power capacity. 

📰  China Adds Smart Contract Feature And More To Digital Yuan

Bitcoin Mining Firms Struggling to Sustain Operations

Blockstream is among the largest mining firms, with an estimated 500MW in the pipeline. The revelation comes at a time when rival miners Core Scientific filed for bankruptcy protection. The firm became bankrupt despite almost exhausting Bitcoin holdings. The sale proceeds hardly settled the miner’s debt. Meanwhile, Core Scientific is under investigation for allegedly committing securities fraud.  

Iris Energy confronted similar challenges despite November’s efforts to dispose of its Bitcoin mining equipment to settle collateralized obligations. 

The move by Blockstream portrays optimism by the mining firm to influence blockchain development. It underscores the firm’s devotion to optimizing returns in mining as bitcoin prices rally. 


Tokenhell.com produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: info@tokenhell.com. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

📰  Binance To Finalize This South Korea Crypto Exchange Acquisition

📰  Panama Supreme Court to Rule on National Cryptocurrency Regulation

Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content