TL;DR
- Blockstream secures $210 million in funding to boost its Bitcoin infrastructure and expand the Liquid Network.
- The Liquid Network has issued over $1.8 billion in assets and currently has more than 3,800 Bitcoin locked on its chain.
- The funding will also support the BMN2 security token, aimed at institutional investors.
Blockstream, one of the leading blockchain technology companies, has secured $210 million in funding through a convertible notes round led by Fulgur Ventures.
This capital will be used to support the company’s projects focused on developing Bitcoin infrastructure, including its layer-2 strategy, mining operations, and financial products. This announcement comes less than a month after Blockstream launched a security token offering in Europe. The company is aggressively expanding in the crypto industry.
Blockstream has closed a $210M convertible note financing round led by @FulgurVentures, driving our mission to bring Bitcoin into global finance.
This capital accelerates layer-2 development, expands mining ahead of the next Bitcoin cycle, and grows one of the world’s largest… pic.twitter.com/gi1ov0LCYU
— Blockstream (@Blockstream) October 15, 2024
Among Blockstream’s most notable products is the Liquid Network, a Bitcoin sidechain launched in 2018, which enables faster transactions and asset issuance, such as stablecoins and security tokens. Since its launch, more than $1.8 billion in assets, including stablecoins, tokenized bonds, and securities, have been issued through Liquid. Additionally, the network currently holds more than 3,800 Bitcoin locked on-chain.
Blockstream Delivers high Bitcoin Returns
The funding will also support the second round of the Blockstream Mining Note 2 (BMN2), a security token backed by the hashrate of its mining operations. This token, launched in September of this year, is aimed at institutional investors in Europe, giving them direct exposure to the hashrate operated by Blockstream at its mining facilities in North America. The company’s first mining token, BMN1, issued in 2021, delivered a 32% Bitcoin return over three years.
The growing demand for layer-2 solutions on the Bitcoin network has been driven by the introduction of the Ordinals protocol in 2023, which allowed non-fungible tokens (NFTs) to be inscribed directly onto the Bitcoin blockchain. This has led to an increase in transactions, pushing companies and startups to develop solutions that enhance scalability and reduce fees.
Among the emerging alternatives are the Lightning Network, Stacks, and Bitlayer. Although demand for layer-2 solutions continues to surge, some experts point out that the security of these networks still needs to improve to meet crypto market standards