Digital asset infrastructure company Blockstream has raised $125 million to finance its Bitcoin (BTC) mining colocation services, underscoring heightened demand for its institutional hosting services amid the bear market.
The $125 million raise was financed by convertible note and a secured loan, Blockstream announced on Jan. 24. Venture capital firm Kingsway Capital led the convertible note raise, with additional participation from Fulgur Ventures. Cohen & Cohen Capital Markets, part of J.V.B. Financial Group, advised Blockstream on the deal.
The funding will enable Blockstream 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. This latter segment is “more directly exposed to Bitcoin price volatility and compressed margins,”