Canada-based Bitcoin and blockchain technology developer Blockstream raised $210m on Tuesday in a series B round co-led by iFinex, the operator of cryptocurrency exchange Bitfinex, and investment firm Baillie Gifford.
Founded in 2014, Blockstream develops blockchain technology, the distributed ledger that underpins cryptocurrency, and it seeks to build the financial infrastructure for the crypto-economy. The round valued it at $3.2bn.
The money will be used to speed up the company’s Bitcoin mining activities, purchasing Bitcoin mining hardware manufacturer Spondoolies, expanding its team and scaling Liquid Network, its Bitcoin sidechain.
Blockstream collected $55m in a 2016 series A round co-led by insurance group Axa’s strategic investment arm, Axa Strategic Ventures, with internet company Digital Garage and venture capital firm Horizon Ventures.
The round also featured Blockchain Capital, AME Cloud Ventures, FuturePerfect Ventures, Khosla Ventures, Mosaic Ventures and Seven Seas Venture Partners.
The company later secured an undisclosed amount from DG Lab Fund I, an investment vehicle backed by Digital Garage and investment bank Daiwa Securities, in 2017.
Khosla Ventures, Real Ventures and Reid Hoffman led Blockchain’s seed round in 2014 and were joined by Crypto Currency Partners, FuturePerfect Ventures, Mosaic Ventures, Innovation Endeavours, Ribbit Capital, AME Cloud Ventures and assorted private investors.
Paolo Ardoino, chief technology officer of Bitfinex, said: “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 (Bitfinex’s stablecoin) Tether 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.”
