Blockstream is in Search of Funds! Global leader Bitcoin (BTC) Blockstream is seeking new capital at a lower price than its last investment.
It is suspected that the implosion and dissolution of the FTX Derivatives Exchange may have contributed to this decline. Especially since it’s a tough time for digital asset companies and investors.
More than a year ago, the Canadian-based crypto infrastructure received $210 million in Series B funding from investment management firm Baillie Gifford and iFinex, the parent company of the Bitfinex cryptocurrency exchange. The funding boosted Blockstream’s valuation to $3.2 billion.
Obviously, the current funding of the startup wants to be disclosed, but according to the chief executive (CEO) Adam Back, it will be used to make the company more accessible to crypto. At the current capital that the company is looking for, its value may be less than $ 1 billion, while the company has fallen 70%, destroying the unicorn status of Blockstream.
“We sell enough equipment and have a large backlog of existing and new customers and miners who want a great deal with us,” Bank announced.
Blockstream is expanding its crypto mining operations
According to Crunchbase data, Blockstream has raised a total of $299 million, including $16 million raised for BTC Mining Notes (BMN) through Security Token Offerings (STOs) in October 2021. In April of this year, Blockstream partnered with the electric car company Tesla and fintech company Block to start a renewal process of BTC mining. Together, they thought of installing a solar and battery powered mining machine. Commenting on the fall in the price of Bitcoin in the past few months, Back said, “Although the price of Bitcoin and the value of mining are decreasing, the acceptance rate has increased in the last few minutes and Our mining operations are a fast-growing, high-growth business for us.”
In the meantime, many miners are creating something that affects the current state of the crypto market. As the price continues to fall, the cost of electricity has increased, causing many miners to default on their loans. Often, this leads to the seizure of their computer platforms.