Blockstream clocks $125 million worth funds to spread Bitcoin mining plans

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Dig­i­tal asset infra­struc­ture com­pa­ny Block­stream has secured a $125 mil­lion fund­ing for back­ing its Bit­coin min­ing colo­ca­tion ser­vices, as report­ed by Cointelegraph.

Accord­ing to Coin­tele­graph, on Jan­u­ary 24, 2023, Block­stream stat­ed that the total amount of funds was raised through con­vert­ible note and a secured loan. Report­ed­ly, ven­ture cap­i­tal firm Kingsway Cap­i­tal con­duct­ed the con­vert­ible note raise, along with Ful­gar Ven­tures, Cohen & Cohen Cap­i­tal Mar­kets, part of JVB Finan­cial Group, advised Block­stream on the deal. 

On the basis of infor­ma­tion by Coin­tele­graph, the funds will per­mit Block­stream to increase its min­ing capac­i­ty for insti­tu­tion­al host­ing cus­tomers. Accord­ing to Block­stream, the lat­ter segment’s focus is “more direct­ly exposed to Bit­coin price volatil­i­ty and com­pressed margins.” 

“We remain focused on reduc­ing risk for insti­tu­tion­al bit­coin min­ers and enabling enter­prise users to build high-val­ue use cas­es,” Erik Sven­son, pres­i­dent and chief finan­cial offi­cer, Block­stream, said.

More­over, Coin­tele­graph not­ed that min­ing oper­a­tion Green­ridge didn’t suc­cumb to bank­rupt­cy in Decem­ber, 2023, after receiv­ing a $74 mil­lion fund­ing from New York Dig­i­tal Invest­ment Group. It is believed that hashrate sta­bilised and prof­it mar­gins were bet­ter at the con­clud­ing peri­od of 2022. How­ev­er, the indus­try is expect­ed to remain under pres­sure, espe­cial­ly for small and mid-sized min­ers with breakeven prices above $25,000 BTC.

(With insights from Cointelegraph) 

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