Blockstream Secures $210M Series B Financing

Blockstream Secures $210M Series B Financing

Blockstream Team

Today we are excited to announce that we have raised $210 million as part of our Series B financing on a valuation of $3.2 billion. Led by Baillie Gifford and iFinex, the operator of Bitfinex, this new investment will help further our mission of building financial infrastructure on Bitcoin.

The new capital will go towards accelerating our Bitcoin mining efforts and the acquisition of Spondoolies to launch an enterprise-grade miner, continuing to scale Bitcoin’s first and most robust sidechain (the Liquid Network), and expanding our team of dedicated hodlers across all departments to keep pace with growth.

We are also excited to welcome Baillie Gifford Investment Manager Allen Farrington to Blockstream as a board observer. He has been active in the Bitcoin community for many years and is also a strong believer in the work we are doing with the Liquid Network.

“It is an honor to be involved with such an important company in the space and to be able to drive forward development of and institutionalization of both mining and the Liquid Network. I am convinced of the potential of tokenized securities on the Liquid Network to be transformative for the architecture of capital markets. Bitcoin-based development and Blockstream’s asset issuance and management platforms can contribute to meaningfully decentralizing financial infrastructure, democratizing control over investment products, and firmly embedding openness and programmability in capital markets. I look forward to working closely with Blockstream to make this a reality.” Allen Farrington

We look forward to Allen’s insights in helping Blockstream build the financial infrastructure of the future on Bitcoin.

Engineering Bitcoin Infrastructure

Blockstream was founded by Dr. Adam Back and a group of developers passionate for Bitcoin and its potential to transform money. In 2014 we raised $21 million in seed funding and began building that vision through the Liquid Network, a Bitcoin sidechain, and c-lightning, one of the main implementations of the Lightning Network. In 2016 we raised $57 million in our Series A round, and followed that with a $11 million convertible note.

Today, we continue to scale all aspects of our operations and deliver key Bitcoin infrastructure through our best-in-class offerings. The Liquid Network has gone on to amass more than $1.1 billion in network value and has seen impressive ecosystem growth with a wide range of platforms — from venues like Hodl Hodl, SideSwap, and TDEX, to Tether, the leading USD stablecoin — all leveraging the sidechain.

Paolo Ardoino, CTO of Bitfinex, echoes Allen Farrington’s sentiment about the potential of the Liquid Network:

“Blockstream is at the forefront of innovation in the Bitcoin space after building on top of the protocol for the last seven years. The potential of how all of the different Blockstream technologies fit together is clear. Just the ability to create Lightning Networks on top of Liquid assets like Tether tokens (USDt) will have a revolutionary impact across the world. We are excited to work more closely with Blockstream in the future to bring this to market.” Paolo Ardoino

We share Paolo’s bullish outlook on assets in the Liquid Network, which is why we’ve forged multiple partnerships and expanded our reach with new acquisitions such as Bitcoin hedge fund Adamant Capital to form the core of Blockstream Finance.

Blockstream Finance and Beyond

As the industry is seeing ever increasing interest in security tokens and financial instruments issued on Liquid, Blockstream Finance will serve as an on-ramp for innovative Bitcoin investment products.

Major securities issuances, such as the Blockstream Mining Note (BMN) and EXO, are two examples of the innovation taking place on the Liquid Network.

Bringing together Liquid tokens and Blockstream Mining, the BMN security token enables investors to have exposure to Bitcoin mining with market liquidity via a simple purchase through Luxembourg’s STOKR.

STOKR is a pioneering digital investment marketplace for alternative assets, with tokens like Blockstream’s BMN, game publisher Exordium’s EXO that provides profit share to investors from the space strategy game Infinite Fleet, and many others to come.

If you or your company would like to learn more about the investment opportunities at Blockstream or how you can integrate Bitcoin technology into your business, reach out to our team.

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