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Bitcoin Infrastructure Firm Blockstream Raises $210 Million

Adam Back, co-founder and chief executive officer of Blockstream, during the Bitcoin 2023 conference in Miami Beach, Florida, US, on Saturday, May 20, 2023. The three-day conference is touted by organizers as "the biggest annual celebration of Bitcoin in the world." (Eva Marie Uzcategui/Bloomberg)

(Bloomberg) -- Bitcoin developer Blockstream Corp. raised $210 million through a convertible note offering that will be used to finance the rollout of the company’s layer-2 technologies, expand mining operations and to buy more of the cryptocurrency.

Fulgur Ventures led the funding round, Montreal-based Blockstream said in a statement Tuesday. Co-founded in 2014 by Chief Executive Officer Adam Back, Blockstream was one of the earliest crypto infrastructure firms. The firm also announced the appointment of Michael Minkevich as chief operating officer. Minkevich was previously responsible for product engineering at Luxoft Holdings Inc. 

Crypto companies are raising cash again this year after the collapse of the digital asset sector in 2022 following a series of scandals and bankruptcies. In January 2023, Blockstream raised $125 million to expand its Bitcoin mining services in a convertible note raise led by venture capital firm Kingsway Capital. 

©2024 Bloomberg L.P.