The company reported raising $125 million to expand its bitcoin (BTC) mining business.. With the help of the new funds, Blockstream hopes to accelerate revenue growth as well as continue expanding infrastructure.
The company managed to raise $210 million in the last round of investment. Blockstream spent them on increasing the power of mining equipment and improving hosting services.. The new capital will reportedly be spent on roughly the same. Blockstream said that their hosting services are still used by a large number of customers. In addition, the industry is experiencing a significant shortage of capacity, so the company's management intends to rely on this service.
Blockstream now has 500 megawatts at its disposal. The main competitor was Core Scientific until it filed for bankruptcy in December. Another competitor, Iris Energy, also found itself sidelined, cutting back on its bitcoin mining capacity in May to pay off secured equipment loans.. And then she said at all that two subsidiaries could not fulfill the accumulated obligations of $ 103 million.
“We believe that recent developments in the cryptocurrency industry highlight the importance of the work that Blockstream is doing in both mining and blockchain project development,” the company representatives assure.
Recently, Bits.media analyzed in detail how the crypto winter affects bitcoin mining and hashrate in general.