Bitcoin Miner Blockstream Wants Another Round Of Investments

A peculiar characteristic of this bear market is that the mining capacity did not reduce or stop growing. Instead, the mining sector continued growing against all odds.

During October, many media outlets reported that miners were struggling to keep their lights on. They powered through the bear market by mining and closing some of their BTC positions to cover expenses.

The whole industry is certain that this strategy will pay off. If not right now then at the beginning of the next year. Adam Back’s Blockstream is one such mining company.

Eyeing a $1 billion investment round

Market conditions are not favorable for those who want to look for investors. While many are citing the FTX debacle as the main reason for the market crash, we have to consider other factors.

The global economy is not in its best shape and the US monetary policy infuses investors with anxiety. Choosing the right investment strategy is quite a challenge even for the most experienced professionals.

Just in August 2021, the evaluation of Blockstream was close to $3.2 billion and the future seemed brighter than ever. The crypto winter was not kind to the mining company that saw a 70% reduction in the evaluation.

At $1 billion, Blockstream is looking to conduct a new round of investments citing the need to expand and scale up its capacity as the main reason for seeking additional financing.

It may be a solid proposal considering the long-term ambition of the company to create a mining facility fully powered by solar. Investors like investing in green companies and many understand the implication of lower maintenance costs in the long run.

Will Blockstream reach its goals?

We should take a closer look at the success or failure of this investment round. The mining company is backed by Jack Dorsey and Adam Back, two names that inspire respect. The financial plan is sound.

If this company can get sufficient funding even amidst the crypto winter, other startups may stop thinking about expanding until the market situation changes for the best.

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