Blockstream, a leading Bitcoin infrastructure firm, has successfully closed a $210 million convertible note funding round, led by Fulgur Ventures. This latest investment will help the company accelerate the development of its layer-2 products and expand its institutional Bitcoin mining services, as it looks to further enhance its influence in the crypto space.
In a press release issued on October 15, Blockstream detailed its plans to use the funding to scale up its operations, including expanding its mining capacity and purchasing more Bitcoin. The move mirrors strategies used by other companies in the cryptocurrency sector, such as MicroStrategy, which has built a significant Bitcoin portfolio over time. As of the latest figures, MicroStrategy holds a substantial 252,220 BTC.
Blockstream’s announcement comes after an earlier $125 million convertible note financing in January this year, also aimed at boosting its Bitcoin mining services. In August 2023, the firm sought an additional $50 million for similar initiatives.
According to Blockstream, the $210 million raised in this round will be channeled into the development of its two flagship layer-2 solutions: Liquid Network and Greenlight. These solutions are key to Blockstream’s efforts to enhance Bitcoin’s scalability and utility.
The Liquid Network, launched in 2018, is a layer-2 solution that allows for asset tokenization on the Bitcoin network. It operates as an interoperable sidechain with the Lightning Network, offering infrastructure that enables users to issue digital assets, such as stablecoins and tokenized securities. To date, more than $1.8 billion worth of assets have been issued on the Liquid Network, Blockstream noted. Additionally, the platform has 3,844 bitcoins locked on-chain, demonstrating its growing adoption. The network is also gaining traction in the real-world asset market, with $1 billion in promissory notes recently issued by Mexico’s Mifiel.
Greenlight, another key solution developed by Blockstream, enables developers to integrate non-custodial Bitcoin Lightning Network-powered payments into decentralized applications and businesses. This product is gaining attention for its potential to revolutionize payments across decentralized platforms.
In a significant management move, Blockstream has appointed Michael Minkevich as its new chief operations officer. Minkevich brings extensive experience from his previous role as a product engineer at Luxoft, a digital asset strategy and engineering platform.
Meanwhile, Canary Capital, a crypto-focused investment firm, has taken significant steps towards listing a spot Litecoin exchange-traded fund (ETF) on Wall Street trading terminals. Canary Capital filed the necessary paperwork with the U.S. Securities and Exchange Commission (SEC) for the formal registration of the Litecoin ETF, signaling an important milestone in the cryptocurrency’s integration into mainstream financial markets.
As the SEC continues to scrutinize various cryptocurrency ETFs, including Bitcoin and Ethereum products, Litecoin’s potential approval remains uncertain. However, the 2018 assertion by SEC Chair Gary Gensler that Litecoin is not considered a security, similar to Bitcoin, could increase its chances of success. Despite the regulatory uncertainties, the race for cryptocurrency ETFs remains highly competitive, with firms like Canary Capital vying for a foothold in the market.
Blockstream’s strategic funding and ongoing developments in Bitcoin infrastructure signal a promising future for the company, as it continues to innovate and expand its offerings within the rapidly evolving crypto economy.