Blockstream raises $210 million to expand Bitcoin layer‑2 and mining

Blockstream closed a $210 million convertible‑note financing round on October 15, 2024, with Fulgur Ventures as the lead investor【1】. The company will deploy the capital to accelerate development and adoption of its Bitcoin layer‑2 solutions, expand mining capacity, and enlarge its Bitcoin treasury, positioning itself for the upcoming Bitcoin market cycle【1】.

The funding targets three pillars of Blockstream’s business. First, it will speed up the rollout of the Liquid Network—a sidechain that offers one‑minute block times, confidential transactions and the ability to issue digital assets such as stablecoins and security tokens. Since its 2018 launch, Liquid has locked over 3,844 BTC and facilitated more than $1.8 billion in assets, including tokenized bonds and securities【1】. Second, the money will bolster Blockstream’s Lightning implementation, Core Lightning, and its cloud‑hosted “Lightning‑as‑a‑service” platform, Greenlight, which together aim to make Bitcoin payments faster and cheaper for enterprises【2】. Third, the round will fund mining expansion, with the goal of scaling hash‑rate‑backed security tokens like the recent BMN2 note that follows a predecessor delivering cash‑on‑cash returns of up to 103 %【1】.

Blockstream’s push comes as institutional interest in Bitcoin‑based infrastructure grows. The company cites rising demand for secure, scalable financial products built on Bitcoin, exemplified by Mexican fintech Mifiel’s issuance of over $1 billion in Liquid‑based digital promissory notes and partner STOKR’s launch of the first security token backed by Nasdaq‑listed shares【1】. By deepening its layer‑2 stack and mining footprint, Blockstream hopes to become a primary conduit between Bitcoin and traditional finance, while also enlarging its publicly known Bitcoin holdings to rank among the world’s largest treasuries【1】.

The round also brings leadership change: Michael Minkevich, a veteran of Luxoft’s product engineering and IPO execution, joins as chief operating officer to steer the next growth phase【2】. His appointment underscores Blockstream’s focus on scaling both technology and go‑to‑market capabilities.

If Blockstream can translate the fresh capital into broader adoption of Liquid and Lightning, it could cement its role as the de‑facto infrastructure layer for Bitcoin‑based assets. The open question remains whether the expanded mining operations and larger treasury will meaningfully influence the next Bitcoin price cycle or simply reinforce Blockstream’s market position.