ArticleLeading blockchain company Blockstream has effectively raised $210 million in debt funding via a convertible notes deal run under Fulgur Ventures. On October 15, Blockstream revealed this financing, which would greatly improve its attempts on Bitcoin infrastructure—more especially, its layer-2 methods, mining activities, and financial product development.
Among its main products are the 2018 released Bitcoin sidechain Liquid Network. The architecture of the platform seeks to accelerate transactions and facilitate the issuing of various assets including security tokens and stablecoins. At present holding 3,844 Bitcoins locked on-chain, the Liquid Network has issued almost $1.8 billion in assets.
Blockstream revealed recently its continuous fundraising activities, together includes the second phase of its security token, Blockstream Mining Note 2 (BMN2). Targeting institutional investors in Europe and giving them direct access to Bitcoin mining capabilities, Blockstream’s mining activities across North America support this token with their hash rate.
The business debuted its first security token, Blockstream Mining Note (BMN1), in 2021; it matured in July and throughout its three-year tenure produced a 32% return in Bitcoin. Originally, Blockstream sought to generate $50 million by means of a note promising to purchase cheaper Bitcoin mining equipment in lean times.
Following the launch of the Ordinal protocol in 2023, which lets non-fungible tokens (NFTs) directly be stored and inscribed straight on the Bitcoin blockchain, demand for Bitcoin layer-2 solutions has exploded. This higher activity has driven established companies as well as startups looking for scalable solutions with quicker transactions and less expenses.
Although the utility of Bitcoin is growing, especially with the introduction of Bitcoin exchange-traded funds in the United States, analysts point out that security precautions for these layer-2 networks still require development. Other layer-2 options include the Lightning Network, Stacks, Built on Bitcoin, and Bitlayer; the market for layer-2 solutions altogether across several networks is valued at around $19.65 billion.
With this fresh investment, Blockstream is set to enhance its layer-2 products, including Liquid Network and its Greenlight solution, which lets non-custodial Bitcoin payments for distributed companies and projects possible. According to experts, this calculated investment is very essential for including Bitcoin into a larger financial scene.
