Blockstream raises $125M to finance expanded Bitcoin mining operations – Cointelegraph

Digital asset infrastructure firm Blockstream has raised $125 million to finance its Bitcoin (BTC) mining colocation providers, underscoring heightened demand for its institutional internet hosting providers amid the bear market. 

The $125 million increase was financed by convertible be aware and a secured mortgage, Blockstream announced on Jan. 24. Enterprise capital agency Kingsway Capital led the convertible be aware increase, with further participation from Fulgur Ventures. Cohen & Cohen Capital Markets, a part of J.V.B. Monetary Group, suggested Blockstream on the deal.

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The funding will allow Blockstream to broaden mining capability for institutional internet hosting prospects — a phase the corporate stated was “resilient” within the face of Bitcoin price volatility in comparison with so-called prop miners. This latter phase is “extra immediately uncovered to Bitcoin value volatility and compressed margins,” Blockstream stated.

“We stay centered on lowering threat for institutional bitcoin miners and enabling enterprise customers to construct high-value use circumstances,” stated Erik Svenson, Blockstream’s president and chief monetary officer.

Associated: BlockFi to sell $160M in Bitcoin miner-backed loans: Report

A protracted bear market in crypto, punctuated by a number of high-profile bankruptcies that culminated in the FTX collapse, positioned important stress on Bitcoin miners. In December, Bitcoin mining big Core Scientific filed for 11 bankruptcy as a consequence of plunging revenues.

Mining operation Greenridge avoided bankruptcy in December by receiving a $74 million lifeline from New York Digital Funding Group.

As reported by Cointelegraph, Bitcoin miners’ worst days could have handed as hashrate stabilized and revenue margins regularly improved towards the tip of 2022. Nevertheless, the business stays beneath stress, particularly for small- and mid-sized miners with breakeven costs above $25,000 BTC.

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