© Reuters. Blockstream raises $125 million to invest in bitcoin mining
Bitcoin technology company Blockstream has raised $125 million to raise investment in mining, a sector that has been struggling over the past year.
Miners use specialized, power-hungry hardware to find transaction blocks and secure the network economically.
As the market cap of Bitcoin decreases, so does the dollar-denominated revenue of miners, thus excluding less efficient players from the market.
After the recent surge to $23,000, many miners are back to operating profitably.
“This fundraiser allows us to accelerate the year-over-year revenue growth we established with 2021 Series B and continue to build the infrastructure for the Bitcoin economy of the future,” explained Erik Svensson, President and CFO of Blockstream.
The previous investment of $210 million was made in August 2021, around the time the market hit an all-time high.
This resource has been used to build cloud mining facilities, where customers rent ASICs to the company to earn BTC for a limited time. Tuesday’s fundraising will allocate capital for the same purpose.
“Demand for Blockstream’s hosting services remains high due to the company’s strong track record and large scale, along with industry-wide shortages in available capacity,” the company said.
Blockstream is one of the largest mining operators in the world, with a capacity of 500 megawatts.
Blockstream concluded, “Recent events in the broader cryptocurrency industry highlight the value and importance of the work that Blockstream is doing in both blockchain development and cryptocurrency mining.”
By Cryptonizing