Blockstream Raises $125 Million to Become a Major Player in Bitcoin Mining

Has raised $125 million to break into the bitcoin mining industry. the money was used to deploy capital for the purpose of building mining facilities to host services. core scientific—one of the largest publicly traded miners in north america—filed for bankruptcy in december and is now being investigated for potentially committing securities fraud. iris energy also slashed its bitcoin mining capacity in may to pay down its collateralized loans for mining hardware in november.

Prior $210 million raise took place in august 2021, and tuesday’s raise was for the same purpose. demand for blockstream’s hosting services remains high due to the company’s strong track record and substantial scale. it is one of the world’s largest mining operators, with 500 megawatts in its development pipeline. bitcoin’s latest pump to $23,000 has allowed the average miner to operate at a profit.

Users are financially incentivized to secure the blockchain through the mining process, and miners are rewarded with a fixed amount of bitcoin for constructing the next block. as bitcoin’s market value decreases, so does the dollar-denominated revenues available to miners. blockstream’s president & cfo stated the fundraise allows them to accelerate the year-over-year revenue growth. recent events in the broader cryptocurrency industry underscore the value and importance of the work blockstream is doing in both blockchain development and bitcoin mining.

By Evey Lovelace

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