Bitcoin infrastructure firm Blockstream, led by British cryptographer Adam Back, whose proof of work algorithm served as the foundation for Bitcoin’s underlying technology, has raised $210 million as part of a Series B financing at a valuation of $3.2 billion.
According to the announcement, investors include Scotland-based investment firm Baillie Gifford and iFinex, the parent company of stablecoin issuer Tether and Hong Kong-based cryptocurrency exchange Bitfinex. The new funding comes alongside the acquisition of the intellectual property of Spondoolies, an Israeli Bitcoin mining hardware manufacturer specializing in the production of ASICs, for an undisclosed sum. Short for application-specific integrated circuits, these devices are solely geared to mine cryptocurrencies that operate proof of work consensus mechanisms such as that of Bitcoin. Spondoolies team will also be joining Blockstream to build the company’s ASIC arm.
With raised capital, the company hopes to scale its mining operations and develop new products. “We actually expect to have Blockstream-branded miners on the market in Q3 next year,” says Adam Back, CEO of Blockstream.
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Back founded Blockstream in 2014 alongside Bitcoin protocol developers and other co-founders. The Victoria, Canada-based firm has since established itself as one of the leading technology startups in the space. Blockstream’s mining facilities, accounting for a combined 300 megawatts worth of energy capacity, are used by clients such as Financial services behemoth Fidelity Investments and Mike Novogratz’s Galaxy Digital. In June, Jack Dorsey’s Square ...