The bear market has strongly affected bitcoin (BTC) miners. But, some companies have managed to pull out of the game to the point of wanting to expand their operations. This seems to be the case with the technology company Blockstream which specializes in Bitcoin. Indeed, it has recently raised funds to finance the expansion of its Bitcoin mining operations.
A $125 million fund for Bitcoin mining
In an effort to fund bitcoin mining activities, Blockstream raised $125 million. Fundraising was financed through a convertible note and a secured loan. The venture capital firm Kingsway Capital was responsible for carrying out the operation. This saw the participation of the company Fulgur Ventures.
The transaction was completed taking into account advice from Cohen & Cohen Capital Markets for Blockstream. The Bitcoin-focused tech company updated the community on its recent fundraising in a Press release. Through a Twitter post, she invited users to check out a Cointelegraph article to learn more.
Blockstream plans to use the funds to expand its mining capacity to serve institutional clients. The company has also declared that the latter show themselves “resilientin the face of volatility in the price of bitcoin (BTC). The other type of customer shows up “more directly exposed to bitcoin price volatility and margin compression“.
Erik Svenson, President and CFO of Blockstream, explained: “We remain focused on reducing risk for institutional bitcoin miners and enabling business users to create high value use cases»
Bitcoin miners have been under pressure in recent months as the bear market has tightened. The pressure was such that the mining company Greenridge nearly filed for bankruptcy in December. It avoided bankruptcy only thanks to a $74 million fund from the New York Digital Investment Group. On the other hand, Core Scientific, the Bitcoin mining giant, was not so lucky. It filed for bankruptcy in December after recording a sharp drop in revenue. However, the situation is starting to return to normal now. Indeed, since the end of 2022, the hashrate is stabilizing and profit margins are improving.
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