Funding secured by Blockstream to the tune of $210 million in a convertible note round, with Fulgur Ventures taking the helm.
Blockstream, a prominent tech company focused on Bitcoin's layer-2 technologies, has recently completed a $210 million convertible note sale led by Fulgur Ventures. This funding will be used to expand the company's Bitcoin mining business, advance the adoption of its layer-2 technologies, and significantly grow its Bitcoin Treasury.
Adam Back, co-founder and CEO of Blockstream, commented on the announcement, stating it as a defining moment for the company as they embark on a new phase of growth to further bridge the gap between Bitcoin and the wider world of finance.
Expanding Bitcoin Treasury
Blockstream plans to significantly increase its holdings of Bitcoin, highlighting growth in its asset base. This move underscores the company's commitment to Bitcoin and its belief in the digital currency's long-term potential.
Leveling up Mining Business
The investment supports scaling and advancing Blockstream's Bitcoin mining infrastructure. This could potentially involve incorporating new hardware and resources to enhance mining efficiency and capacity, positioning the company as one of the largest holders of Bitcoin by treasury size.
Driving Layer-2 Growth
Funds will also be used to accelerate the deployment and market adoption of layer-2 solutions such as the Lightning Network. Services like the Greenlight "Lightning-as-a-Service" platform, which enables scalable, non-custodial Lightning integration, will likely benefit from this investment.
This financing round reflects Blockstream's strategic focus on reinforcing both its foundational Bitcoin infrastructure and innovative second-layer protocols, aligning capital deployment with its vision for long-term ecosystem development.
Other Notable Assets
Blockstream claims to have more than $1.8 billion in assets, including stablecoins, securities, and tokenised bonds, deployed using its Liquid Network. This demonstrates the network's growing importance in the real-world asset tokenization market, where the Bitcoin blockchain continues to expand as a major ecosystem.
Preparing for the Next Bitcoin Market Cycle
The mining operations expansion is part of Blockstream's preparation for the "next Bitcoin market cycle." As the digital currency continues to gain traction, companies like Blockstream are positioning themselves to capitalize on its potential growth.
Blockstream's Offerings
Blockstream offers two main products: Liquid Network, a Bitcoin sidechain for multiple tokenised assets, and Core Lightning, enabling faster and cheaper Bitcoin transactions. These offerings are key to Blockstream's mission of advancing Bitcoin's capabilities and fostering its adoption in various sectors.
In addition to Bitfinex, which uses Blockstream's Liquid Network for tokenised securities offerings, other companies and institutions are likely to benefit from Blockstream's continued growth and development. As Blockstream moves forward with its new phase of growth, it will be interesting to see how its innovations shape the future of Bitcoin and the broader financial landscape.
[1] Blockstream's press release: https://blockstream.com/press/blockstream-announces-210-million-in-funding-to-accelerate-growth-of-bitcoin-mining-business-and-layer-2-technologies/ [2] Coindesk article on the funding round: https://www.coindesk.com/business/2021/07/20/blockstream-raises-210m-for-bitcoin-mining-and-layer-2-technology-expansion/
The funding obtained by Blockstream from the convertible note sale will aid in the expansion of their Bitcoin mining business, positioning them as one of the largest holders of Bitcoin by treasury size.
The investment will also support the advancement of layer-2 technologies like the Lightning Network, potentially enabling scalable, non-custodial Lightning integration through services such as the Greenlight platform.
