Blockstream secures $210M debt funding for Bitcoin layer-2 strategy

As a seasoned crypto investor with a knack for spotting promising projects, I find myself intrigued by Blockstream’s recent funding round of $210 million. With my years of experience in this dynamic and ever-evolving market, I can see that Blockstream is not just another player but a key contender shaping the future of Bitcoin.


blockchain company Blockstream broadened its financial fundraising strategies, amassing $210 million via a series of convertible notes, with Fulgur Ventures serving as the primary organizer for this round.

As stated in a declaration made on October 15th, this debt is intended for funding Blockstream’s continuous work on Bitcoin’s underlying infrastructure. This includes their strategy for layer-2 systems, mining activities, and the creation of financial products.

One of Blockstream’s main offerings includes the Liquid Network, a supplementary blockchain for Bitcoin introduced in 2018, which aims to facilitate quicker transactions and issuance of assets like stablecoins and security tokens.

As reported by the company, more than $1.8 billion worth of assets, such as stablecoins, tokenized bonds and securities, have been distributed on the Liquid platform so far. Currently, approximately 3,844 Bitcoins (BTC) are being held within the network, secured on the blockchain.

Blockstream has revealed a new fundraising method: they’re launching another round of the Blockstream Mining Note (BMN), which is their security token backed by the power of Bitcoin miners. This second batch, named BMN2, was announced in September. Investors in Europe have the opportunity to invest directly in the Bitcoin hashrate that Blockstream operates through its top-tier mining facilities spread across North America.

In 2021, the company launched its initial security token, known as the Blockstream Mining Note (BMN1). This token reached maturity in July and provided a 32% return on investment in Bitcoin over its 3-year lifespan, according to their statement.

Blockstream secures $210M debt funding for Bitcoin layer-2 strategy

2021 saw Blockstream disclose intentions to gather approximately $50 million via bond sales, which they would use to acquire discounted Bitcoin mining machinery during periods of market decline.

Bitcoin layer-2s

Since the debut of the Ordinals protocol in 2023, there’s been a surge in the development of layer-2 solutions for the Bitcoin network. This groundbreaking protocol made it possible to directly store and inscribe non-fungible tokens (NFTs) onto the Bitcoin blockchain itself.

The increase in network activity sparked a competition between established firms and new businesses, as they all sought to develop solutions that could enhance transaction speed and reduce costs on the network.

In recent times, the practicality of the Bitcoin system, often overshadowed by Ethereum‘s usefulness for many years, has solidified its position in the cryptocurrency market with great vigor, particularly following the sanctioning of Bitcoin exchange-traded funds within the United States.

According to industry experts, the security of these secondary networks still lags behind, it seems.

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2024-10-15 19:37