Bitcoin miners came under significant pressure during the bear market; however, Blockstream said institutional hosting customers were more “resilient.”
Digital infrastructure company Blockstream has raised $125 million to support its Bitcoin
BTC ($22,690) Colocation Mining, citing increased demand for its corporate hosting services amid a bear market.
The $125 million raise was financed by a convertible note and a secured loan, Blockstream announced on Jan. 24. Venture capital firm Kingsway Capital led the convertible note, with additional participation from Fulgur Ventures. Cohen & Cohen Capital Markets, a subsidiary of J.V.B. Financial Group, informed Blockstream of the deal.
The money will allow Blockstream to increase mining capacity for institutional hosting customers – a company that says it is “resilient” to Bitcoin price volatility compared to the so-called Bitcoin miners. ‘quickly. The latter part is “to be directly exposed to Bitcoin price changes and compression ratio,” Blockstream said.
Erik Svenson, president and chief financial officer of Blockstream, said, “We are focused on reducing the risk for bitcoin miners and the company by helping the company’s users to create high-quality use cases.” The prolonged crypto bear market, in which many high-income banks stepped up and the collapse of FTX have put a lot of pressure on Bitcoin miners. In December, major Bitcoin miner Core Scientific filed for 11 bankruptcies due to falling revenue. Greenridge Mining avoided bankruptcy in December by receiving a $74 million life cycle from New York Digital Investment Group.
As reported by Cointelegraph, the days of Bitcoin miners may be over as the hash rate is stable and the profit margin is gradually increasing until the end of 2022. However, the industry remains under pressure, especially for small miners and producers who pay higher than $ 25,000 BTC.
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