Blockstream, the San Francisco-based company, and leader in Bitcoin infrastructure has raised $125 million in an investment round led by Kingsway Capital to finance the expansion of its Bitcoin mining operations.
The investment round was attended by institutional and private investors from around the world. With these funds, Blockstream has been able to expand its Bitcoin mining capacity by announcing plans to invest in state-of-the-art mining technologies to increase its efficiency and reduce its costs.
While some advance others fall
While Blockstream was lucky to receive this capital injection, other companies in the crypto mining space have not been so lucky. The crypto winter continues to affect the industry as a whole and mining is no exception, with Core Scientific being the latest victim.
On December 21, the company filed for Chapter 11 bankruptcy protection in Texas, citing reduced profits from the drop in the price of bitcoin and increased costs. This has been a difficult decision for the company since it was still generating a positive cash flow, however it is not enough to maintain its operations.
CEO Adam Back seems optimistic
In an interview the renowned CEO, Adam Back was seen to be very optimistic despite the crypto winter we are currently facing.
“Blockstream had a strong 2022 with 3x revenue growth from 2021, and strong demand for hosting into 2023 to expand for, with a return to a bullish market, with Bitcoin up 40% in the first 3 weeks of 2023 alone.”
He mentioned that this last year had been a learning experience for many after the fall of various companies and protocols. It has served to awaken and reorient the sector towards security and decentralization, empowering users to trust themselves and self-protection more.
In conclusion, despite the harsh situation that the crypto world is facing, and the fall of large institutions around it, the successful round of investment in Blockstream is a reflection of the interest that still exists in bitcoin mining. With this investment, Blockstream is positioned as one of the major players in the crypto mining market and is expected to continue to lead the way in innovation in the industry.