To accelerate our Bitcoin mining capabilities, we have acquired mining hardware manufacturer Spondoolies for equity and cash as part of our Series B fundraising. Spondoolies’ experience building reliable mining rigs will enable us to stay at the forefront of an ever-evolving industry and further serve our growing list of clients with the most sophisticated mining technology and best practices.
The deal is structured as an IP acquisition with Spondoolies’ CEO Assaf Gilboa coming on board as the head of Blockstream’s ASIC division, along with the core team. Together, they will help build Blockstream’s ASIC arm and under Assaf’s leadership, launch the world’s first enterprise-class miner in 2022.
“The Spondoolies team is excited to partner with Blockstream. Joining forces will allow us to better navigate turbulent supply chains and market fluctuations. Spondoolies and Blockstream’s cooperation started back in 2014, and over the years, we’ve collaborated on numerous mining-related projects. The relations were always of trust and mutual respect, which in my opinion, are the key to a successful and sustainable merger. From inception, the Spondoolies team envisioned transforming the mining industry into a highly professional operation where miners use high-quality, reliable, and durable equipment. Our vision manifested itself in the products we designed throughout the years, and we are glad Blockstream shares our goals.” Assaf Gilboa
The Spondoolies Pedigree
Spondoolies was founded in Israel by a team of former semiconductor engineers and became one of the first mining hardware companies outside of Asia to make high performance ASIC miners. When they arrived on the scene in 2013, many in the mining industry were impressed with their rack mount form factors, and their ability to compete with bigger, more established companies.
The Spondoolies team is well known for bringing the SP Bitcoin Miner Family to market. The company’s commercial-grade SP10, SP30, and SP35 Yukon professional rack mount models and its smaller cousin, the consumer SP20 Jackson, were considered to be industry benchmarks in their heyday.
At its peak, Spondoolies captured almost 5% of total hash power globally with $28 million in sales.
2021, Year of the Miner
The Spondoolies acquisition comes during a breakout year for Blockstream Mining and will play an important role in ensuring the success of our new partnerships and product launches.
Earlier in the year, we welcomed Galaxy Digital and BlockFi to the world of Bitcoin mining through our colocation services. The Blockstream Mining Note is now live, accumulating over 0.9 BTC per BMN in its first 50 days of operations, and has laid the foundation for mining-specific financial products.
We also recently partnered with Square to build a solar-powered Bitcoin mining facility as a case study for future zero-emission energy projects. And just last week, we launched Blockstream Energy, a new mining product that will incentivize renewable energy use by scaling energy demand with our modular mining units (MMUs).
Mine Bitcoin with Blockstream Now
With the new capital raised from our Series B financing, we plan to accelerate our expansion into the Bitcoin mining space. If you or your company are interested in learning more about forming a partnership with Blockstream Mining or how you can integrate Bitcoin mining into your operations, reach out to our team through the form available on the official Blockstream Mining page.