Blockstream, a company that both mines Bitcoin and provides hosting for the cryptocurrency, has revealed that it has been successful in raising a total of $125 million in the form of convertible notes and secured loans for the purpose of expanding its institutional Bitcoin mining colocation services.
According to a statement released by the firm, there is a widespread scarcity of accessible power capacity in the market, which contributes to the continued high demand for Blockstream’s hosting services. The company also has an impressive track record and a considerable size.
Erik Svenson, President and Chief Financial Officer of Blockstream, has claimed that the firm will be able to grow revenue year over year as a result of this most recent funding round and will also continue to expand Bitcoin infrastructure.
“We remain focused on reducing risk for institutional bitcoin miners and enabling enterprise users to build high-value use cases on the most secure, robust, and scalable blockchain in the world – Bitcoin.”
Blockstream, which is one of the most significant Bitcoin mining businesses in the world, has more than 500 Megawatts of potential capacity in the works for future expansion. Blockstream will also extend the availability of its mining solutions for renewable energy sources.
Additionally, Blockstream will continue the development of its very own Bitcoin miner, which is “the first institutional-grade Bitcoin miner purpose-built to scale”, as asserted by the company.
In a related development, the mining difficulty of Bitcoin reached a new all-time high of 37.59 trillion hashes after registering a very uncommon spike of over 10%, the largest surge since November of last year. This was the only occasion in 2022 that the mining difficulty grew by a two-digit percentage.