{"id":9015,"date":"2022-12-07T06:18:19","date_gmt":"2022-12-07T06:18:19","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=9015"},"modified":"2022-12-07T06:18:20","modified_gmt":"2022-12-07T06:18:20","slug":"blockstream-raising-funds-for-mining-at-70-lower-company-valuation","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9015","title":{"rendered":"Blockstream raising funds for mining at 70% lower company valuation"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>The depths of a bear market may not be the best time to raise funds but that is exactly what Blockstream is doing.<\/p>\n<p>The crypto infrastructure firm is seeking fresh funding, but at a much lower valuation than previous rounds, according to a Dec. 7 Bloomberg report.<\/p>\n<p>Blockstream was valued at $3.2 billion when it held its last Series B funding round raising $210 million in August 2021. Today that valuation may have fallen almost 70% to below $1 billion according to the report.<\/p>\n<p>The company, founded in 2014, has raised a total of $299 million in funding over four rounds, according to CrunchBase.<\/p>\n<p>Blockstream CEO and cryptographer Adam Back did not share details of the latest funding round but did reveal that the capital will be invested into expanding the firm\u2019s mining capacity.<\/p>\n<p>\u201cWe rapidly sold out all of the capacity and have a big backlog of existing and new customers with miners seeking large-scale hosting with us.\u201d<\/p>\n<p>The firm is working with Jack Dorsey\u2019s Block (formerly Square) to develop a solar-powered Bitcoin mining facility. The mining farm will have 3.8 megawatts (MW) of electrical capacity using Tesla\u2019s solar technology and its Lithium-ion 12 MWh \u2018Megapack\u2019, as reported by Cointelegraph in April.<\/p>\n<p>Back acknowledged that BTC prices and mining profi tability were down but added \u201chosting rates have risen over the last quarters and our mining services are a rapidly expanding, high-margin enterprise business for us.\u201d<\/p>\n<p>Bitcoin miners are currently suffering a triple whammy of high hash rates and difficulty, high energy prices, and low BTC prices. This has caused profitability, or hash price, to fall to near-record lows of around $0.064 per TH\/s per day, according to Hashrate Index.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Blockstream CEO Adam Back talks Bitcoin over a game of Jenga<\/em><\/strong><\/p>\n<p>In its monthly newsletter on Dec. 5, Blockstream revealed that its Blockstream Mining Note (BMN) token has earned around 5.37 BTC cumulatively in returns nearly halfway into its three-year term.<\/p>\n<p>BMN is an EU-compliant security token that provides qualified investors access to Bitcoin hash rate at the firm\u2019s U.S. enterprise-grade mining.<\/p>\n<p>The firm has also been promoting a new limited edition \u2018Jade Transparent\u2019 hardware wallet claiming that it is \u201chodling our Bitcoin into the 2090s and beyond.\u201d <\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/blockstream-raising-funds-for-mining-at-70-lower-company-valuation\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The depths of a bear market may not be the best time to raise funds but that is exactly what Blockstream is doing. The crypto infrastructure firm is seeking fresh funding, but at a much lower valuation than previous rounds, according to a Dec. 7 Bloomberg report. Blockstream was valued at $3.2 billion when it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-9015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9015"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9015\/revisions"}],"predecessor-version":[{"id":9017,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9015\/revisions\/9017"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9016"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}