Blockstream, a provider of infrastructure for the cryptocurrency industry, is seeking a new round of funding at a substantially lower value than it did for its previous round, according to a Bloomberg report.
When Blockstream launched its final Series B investment round, raising $210 million in August 2021, it was valued at $3.2 billion. According to the research, that worth may have dropped by roughly 70% to less than $1 billion today.
Adam Back, the CEO of Blockstream and a cryptographer, would not disclose the specifics of the most recent investment round, but he did say that the money will be used to increase the company’s mining capacity.
“We rapidly sold out all of the capacity and have a big backlog of existing and new customers with miners seeking large-scale hosting with us,” he said.
Founded in 2014, the firm has raised $299 million in total as of this writing, according to Crunchbase data. It offers infrastructure support to the cryptocurrency sector and most recently collaborated with fintech company Block to open a mining operation that is powered by solar and batteries.
Over the years, it has also acquired a number of companies, including SponDoolies-Tech and Adamant Capital.
To create a solar-powered Bitcoin mining facility, the company is collaborating with Jack Dorsey’s Block (previously Square).
Following the failure of crypto exchange FTX, Blockstream is not the only crypto company that has had to lower its ambitions as market circumstances worsen. According to sources, Amber Group is also raising money and is doing so at values that are either unchanged from earlier rounds or lower.
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