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)