Bitcoin infrastructure firm Blockstream seeks new funds at 70% lower valuation than 2021

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Dr. Adam Back. Source: Video/YouTube screenshot

Bitcoin-focused development and infrastructure firm Blockstream is seeking new funding at a valuation that “may be below $1 billion,” about 70% lower than its last funding round in 2021, according to a report. Bloomberg report.

Blockstream’s valuation was likely impacted by the collapse of crypto exchange FTX, as well as generally bearish sentiment in bitcoin and crypto markets, the report said, citing “people familiar with the matter.” .

Valued at $3.2 billion in 2021

The firm, which is led by Bitcoin pioneer and cryptographer Adam Back, was valued at $3.2 billion in its last funding round last year, when it raised $210 million from a number of leading companies. Among them were top asset manager Baillie Gifford and iFinex, the company behind crypto exchange Bitfinex and stablecoin issuer Tether.

Asked by Bloomberg about the size of the funding round, Back reportedly declined to answer, but instead said the company planned to use the funds to expand its hosting capacity for Bitcoin mining machines.

“We quickly sold out the full capacity and have a large backlog of existing and new customers with miners looking for large-scale hosting with us,” Back said.

He added that mining equipment hosting prices have been rising in recent quarters, despite a decline in the spot price of BTC.

“While Bitcoin price and mining profitability are down, hosting rates have increased over the past few quarters and our mining services are a growing, high-margin enterprise business for us,” Back said.

Bitcoin mining with renewable energy

Blockstream said earlier this year that it was working with former Twitter CEO Jack Dorsey’s Block Inc. to build a solar-powered Bitcoin mining farm. Additionally, the Bitcoin Company is also working with Block Inc. and Norwegian maritime industrial conglomerate Aker to “pursue alternative and renewable Bitcoin mining.”

Blockstream was founded in 2014 and is headquartered in British Columbia, Canada. Among its best-known products are a bitcoin sidechain known as Liquid and the Jade hardware wallet.

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