Blockstream Raises $210M And Acquires an Israeli Bitcoin Mining Gear Firm

Blockstream Bitcoin infrastructure firm has raised $210 million in Series B funding, which gives the crypto technology firm a valuation of $3.2 billion. Blockstream announced that on Tuesday, August 24.

iFinex, the parent company of cryptocurrency exchange Bitfinex and the U.K. investment management firm Baillie Gifford were Blockstream new backers, which joined existing investors like Jack Dorsey, Twitter CEO, in the participation of the funding round.

Blockstream also announced that it had acquired Israeli Bitcoin mining hardware manufacturer Spondoolies for undisclosed terms.

The developments, therefore, pave the way for Blockstream, a Canada-based Bitcoin infrastructure company, to build a business line manufacturing specialised mining chips known as ASICs.

Blockstream Chief Strategy Officer, Samson Mow, talked about the development and said that the investment would support the firm’s further growth and assist in expanding its cryptocurrency mining products and services, including its recently launched Blockstream Energy service, which maximises renewable energy investment returns at power production sites. 

Mow said that the new funding would also further its bitcoin-focused financial products and its Liquid sidechain network. He also stated that Blockstream plans to develop its own ASIC miner for its operations and sell on the retail market in the following year.

“The fresh infusion of capital will allow us to launch more products under Blockstream Finance, as well as bring our new bitcoin ASIC miner to market next year,” Mow said.

Blockstream will use its new mining infrastructure in partnerships worldwide, including its collaboration with Square Financial payments services firm, run by Twitter CEO Jack Dorsey, to develop an open-source, solar-powered mining facility in the US.

Blockstream is a blockchain technology company co-founded by Cypherpunk and cryptographer Adam Back. The firm focuses on various Bitcoin-related areas, such as operating as a mining service provider and developing renewable-based infrastructure planned to green cryptocurrency mining operations.

Crypto Funding Rounds Increasing

Blockstream has joined several cryptocurrency-related firms that have raised funding to expand their business activities.

Circle, payment and digital currency firm, recently conducted the largest financial round worth $440 million for its business growth in the second quarter. Circle recently announced plans to go public through a $4.5 billion merger with a blank-check company.

The survey by CB Insights analytics firm shows that funding for crypto and blockchain business-related firms topped $4.38 billion for the first time in the second quarter of 2021, despite the sharp plunge in crypto prices during that time, which is up more than 50% from the previous quarter and almost ninefold increase from the same period a year earlier.

The record funding shows how investors find alternative ways to gain exposure to the cryptocurrency industry by acquiring stakes in private startups developing technology for virtual currencies and the distributed networks that underpin them.