Blockstream Closes $210 Million Funding Round to Boost Layer-2 Solutions

Blockstream has successfully closed a $210 million convertible note funding round, led by Fulgur Ventures. This substantial financial boost is set to accelerate the company’s layer-2 products, enhancing its position in the Bitcoin infrastructure domain.

According to Blockstream, the funding will also be used to expand its mining capacity and purchase more Bitcoin. This strategic move mirrors the approach taken by MicroStrategy, which has amassed 252,220 BTC to date.

Recent Funding Initiatives

Earlier this year, in January, Blockstream announced a $125 million convertible note financing raise aimed at expanding its institutional Bitcoin mining services. Additionally, the firm sought $50 million for a similar initiative in August 2023.

Bolstering Layer-2 Networks

Blockstream’s recent $210 million convertible debt offering, announced on October 15, will significantly bolster the development of its two flagship layer-2 solutions: Liquid Network and Greenlight.

“This fundraise is pivotal in our journey to bridge Bitcoin with broader finance,” said Adam Back, Blockstream’s chief executive officer.

Liquid Network

The Liquid Network, a Bitcoin layer-2 solution interoperable with the Lightning Network, was launched in 2018 as Bitcoin’s first sidechain. Liquid provides infrastructure that facilitates asset tokenization on the Bitcoin network. To date, more than $1.8 billion worth of assets, including stablecoins and tokenized securities, have been issued on the network.

According to Blockstream, Liquid currently has 3,844 bitcoins locked on-chain. Its adoption is growing in the $300 billion real-world asset market, with notable issuances such as $1 billion in promissory notes by Mexico’s Mifiel.

Greenlight

Greenlight is another Blockstream solution that enables developers to integrate non-custodial Bitcoin Lightning Network-powered payments into decentralized applications and businesses. This solution aims to simplify the implementation of advanced Bitcoin payment systems.

Leadership Update

Blockstream has appointed Michael Minkevich as its new chief operations officer. Minkevich brings experience from his previous role as a product engineer at the digital asset strategy and engineering platform Luxoft, adding valuable expertise to the Blockstream team.

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