Bitcoin Infrastructure Firm Blockstream Secures $125M to Expand Mining Operations

Digital asset infrastructure firm Blockstream raised $125 million in convertible note and secured loan financing to expand mining capacity for institutional hosting customers – a segment the company said was “resilient” in the face of Bitcoin price volatility compared to so-called prop miners.

In addition, Blockstream intends to expand its renewable energy mining products and continue developing its own bitcoin miner.

The convertible note was led by Kingsway Capital, Fulgur Ventures, and other investors. The sole financial advisor to Blockstream is Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC.

The funding follows Blockstream’s Series B round, which closed on $210mn in August 2021. The investment, which was led by Baillie Gifford and iFinex, valued the firm at $3.2bn.

“This fundraise allows us to accelerate the YoY revenue growth we created with our 2021 Series B and continue to build infrastructure for the future Bitcoin economy,” said Blockstream President & CFO, Erik Svenson.

With over 500 Megawatts in its development pipeline, Blockstream is one of the world’s largest bitcoin mining operators.

Cohen & Company Capital Markets, which is a division of J.V.B. Financial Group, is providing financial advice to Blockstream for the deal.