Blockstream Corp., a leading Bitcoin development company, has raised $210 million through a convertible note offering. The funds will be allocated to advancing the company’s layer-2 technologies, expanding its Bitcoin mining operations, and increasing its cryptocurrency holdings.
The funding round, led by Fulgur Ventures, marks a significant milestone for the Montreal-based company. Blockstream, co-founded in 2014 by CEO Adam Back, has been a pioneer in developing infrastructure for Bitcoin and other digital assets. “We are excited to continue driving innovation in the crypto space,” the company said in a statement on Tuesday.
In addition to the capital raise, Blockstream announced the appointment of Michael Minkevich as its new Chief Operating Officer. Minkevich, who previously oversaw product engineering at Luxoft Holdings Inc., is expected to play a critical role in scaling Blockstream’s operations. His appointment comes at a time when the company is positioning itself to capitalize on the renewed momentum in the cryptocurrency industry.
This latest round of funding follows a tumultuous period for the digital asset sector. The collapse of the cryptocurrency market in 2022, triggered by multiple scandals and high-profile bankruptcies, had a chilling effect on investment in the space. However, Blockstream appears to have weathered the storm, continuing to attract significant venture capital. In January 2023, the company raised $125 million, also through a convertible note offering, led by venture capital firm Kingsway Capital, to expand its Bitcoin mining services.
Blockstream’s focus on layer-2 technologies and Bitcoin mining underscores the company’s long-term commitment to the cryptocurrency ecosystem. With the new funding, Blockstream is poised to strengthen its position as a key player in the evolving crypto landscape.