According to Adam Back, the new funding would increase the company’s mining capacity. It probably can’t be the ideal moment to raise money during a bad market, but Blockstream is only doing that. As per a December 7 Bloomberg story, the crypto framework company has raised fresh money, although at a substantially lower valuation compared to earlier rounds.
In August 2021, when Blockstream launched its final Series B investment round, raising $210 million roughly, 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. According to CrunchBase, the 2014-founded startup has garnered $299 million towards fundraising over four stages.
Blockstream Increases Mining Facilities In Cryptocurrency
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Adam Back, the CEO of Blockstream and a cryptographer, wouldn’t 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.
To create a solar-powered Crypto mining facility, the company is collaborating with Jack Dorsey’s Block. According to a report from Cointelegraph in April, the mining acreage would have a 3.8 MW power capacity thanks to Tesla’s solar technology with its 12 MWh lithium-ion battery.
Back said that while hosting fees increased over the prior quarter and that their mining operations are increasingly developing, high-margin business for them, he noted that BTC pricing and mining profitability were down. High hash rates and complexity, greater energy prices, and low BTC ranges are currently putting a potent mix on bitcoin miners. According to Hashrate Index, this has led hash price, or profitability, in dropping to almost record-low levels of roughly $0.064 per TH/s each day.
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On December 5, Blockstream published its monthly bulletin, revealing that almost halfway through the three-year term, the BMN token had generated a total return of about 5.37 BTC.
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