Bitcoin infrastructure company Blockstream today announced it has raised $210 million in convertible note financing to expand its Bitcoin mining operations and layer-2 solutions.
With this new funding, which is led by Fulgur Ventures, Blockstream aims to continue its mission of enhancing Bitcoin’s utility, particularly through its layer-2 technologies like the Liquid Network and the scalable Lightning Network integration known as Greenlight.
“This latest fundraise represents a defining moment for Blockstream as we embark on a critical new phase of growth to further bridge the gap between Bitcoin and the wider world of finance,” said Dr. Adam Back, Blockstream’s co-founder and CEO.
Layer-2 solutions, which operate on top of the Bitcoin blockchain, are designed to increase transaction speed and lower costs while maintaining the security of the underlying network. Blockstream’s Liquid Network is one such layer-2 technology that has seen widespread adoption, particularly for issuing tokenized securities and stablecoins.
Since its inception in 2018, the Liquid Network has facilitated the issuance of over $1.8 billion in digital assets. These include tokenized securities and stablecoins, which allow businesses and traders to conduct transactions faster and more securely compared to using the base Bitcoin layer. The technology has found use in powering offerings like Bitfinex’s tokenized securities platform, a testament to Blockstream’s growing influence in the digital asset space.
The new funding will enable Blockstream to further enhance Liquid and other layer-2 products, making Bitcoin more functional for a variety of use cases, particularly in industries that require high-speed transactions and minimal fees.
Growing Mining Operations
In addition to expanding its layer-2 efforts, Blockstream is doubling down on its Bitcoin mining operations. This comes at a time when global interest in Bitcoin mining remains high, despite fluctuating market conditions. Blockstream has been active in this area, providing institutional-grade mining services, launching innovative products like the Bitcoin Mining Note (BMN), which offers investors direct exposure to Bitcoin’s hash rate.
Blockstream’s Bitcoin Mining Note, launched as Series 3 in September 2024, represents a cutting-edge approach to combining traditional financial instruments with cryptocurrency assets. The BMN allows investors to gain exposure to Bitcoin mining without directly managing mining hardware, offering potential higher returns tied to Bitcoin’s hash rate performance.
To support its aggressive expansion plans, Blockstream has also strengthened its leadership team. Michael Minkevich, who previously led product engineering at Luxoft, has joined Blockstream as Chief Operating Officer.