Cryptocurrency-based Blockstream aims to raise funds amid bear market effects | The Financial Express

Cryptocurrency-based Blockstream aims to raise funds amid bear market effects

According to Cointelegraph, Blockstream carried a valuation worth $3.2 billion when it conducted its last Series B funding round raising $210 million in August, 2021

Cryptocurrency-based Blockstream aims to raise funds amid bear market effects
The firm has entered into a working relationship with Jack Dorsey’s Block

Reportedly, bear market implications are not resulting in an appropriate time for fundraising. It is believed that cryptocurrency infrastructure firm Blockstream is looking for fresh funding but at a comparatively lower valuation than previous rounds, with insights from a December 7, 2022, Bloomberg report, as reported by Cointelegraph.

According to Cointelegraph, Blockstream carried a valuation worth $3.2 billion when it conducted its last Series B funding round raising $210 million in August, 2021. Founded in 2014, the company raised a total of $299 million in funding from four rounds, as stated by CrunchBase. 

“We rapidly sold out all of the capacity and have a big backlog of existing and new customers with miners seeking large-scale hosting with us,” Adam Back, CEO, Blockstream, and cryptographer, stated.

On the basis of information by Cointelegraph, the firm has entered into a working relationship with Jack Dorsey’s Block (formerly Square) to create a solar-backed Bitcoin mining facility. It is believed that the mining farm will have 3.8 megawatts (MW) of electrical capacity through usage of Tesla’s solar technology and its Lithium-ion 12 MWh ‘Megapack.’ Reportedly, Back made the acknowledgement that BTC prices and mining profitability were down but added “hosting rates have risen over the last quarters and our mining services are a rapidly expanding, high-margin enterprise business for us.” Currently, Bitcoin prices are enduring a triple effect of high hash rates and difficulty, high energy prices, and low BTC prices. Insights provided by Hashrate Index stated that hash price has fallen to near-record lows of approximately $0.064 per TH/s per day.

Moreover, on December 5, 2022, Blockstream made the revelation that its Blockstream Mining Note (BMN) token has made the earnings of approximately 5.37 BTC in returns close to halfway into its three-year term. BMN is an EU-oriented security token which provides qualified investors rights to get access to Bitcoin hash rate at the firm’s US enterprise-grade mining.

(With insights from Cointelegraph)

Also Read: Cawthorn broke rules over ‘meme’ crypto, told to pay $14K

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First published on: 07-12-2022 at 13:06 IST