Blockstream Looks for Fresh Funding With a Lower Valuation

• Blockstream announced that it has been seeking funding with a low valuation.
• The fund will be used to establish the mining facilities of the company.
• The current valuation has fallen almost by 70% with less than $1 billion.

Blockstream, a blockchain technology company led by Adam Back, has been reportedly seeking fresh funding at a lower valuation than its most recent financing as “the collapse of FTX exacerbates a challenging venture capital backdrop”.

The founder and CEO of the company Adam Back declared that the fund will be utilized to expand the firm’s mining capacity, though he was reluctant to reveal the other details of the funding.

We 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.

Since the inception of Blockstream in 2014, the company has raised an amount of $299 million in total. According to the reports, the company had raised $210 million in August 2021, during the last Series B funding round, with a valuation of $3.2 billion. However, currently, the valuation is almost 70% down with less than $1 billion.

Already, the company has initiated its venture towards the establishment and enhancement of the company’s mining facilities. One such instance is Blockstream’s collaboration with Block Inc. to build the solar-powered Bitcoin mining facility.

Notably, the BTC price and mining profitability were comparatively down but “hosting rates have risen over the last quarters and our mining services are a rapidly expanding, high-margin enterprise business for us” as declared by Back.

The hash rates or profitability has fallen down to as low as $0.064 per day mostly because of the high energy prices and low BTC prices.