Blockstream Seeks Funding At 70% Valuation Cut
- Crypto infrastructure firm Blockstream seeks to raise funds amid a strongly bearish market at a 70% valuation cut.
- In its last funding round, the firm raised close to $210 million at a valuation of $3.2 billion during the 2021 market bull run.
- CEO of Blockstream, Adam Back, confirmed in a Twitter post that his firm had already raised the funds and is not “trying” to do so.
- Blockstream recently partnered Sevenlabs and Poseidon Group to launch Switzerland’s first decentralized security token exchange for BTC.
Prominent crypto infrastructure firm Blockstream seeks to raise funds amid a strongly bearish market, and the catch is, that it is cutting its valuation by almost 70%, which may very well harm the firm’s unicorn status. This huge cut in valuations of crypto firms presents opportunities that many venture capitalists are waiting for, while some see this as the end for crypto.
According to a report from Bloomberg, a significant cut in the valuation of the crypto firm is possible, which will put Blockstream’s unicorn status at risk. Additionally, in its last funding round, the firm raised close to $210 million at a valuation of $3.2 billion, but now, the crypto winter is bringing almost every crypto startup down to their knees.
Blockstream has been operating for a very long time in the crypto space and was created in 2014 with the plans of branching out a business line making specialized mining chips known as ASICs. Interestingy, the crypto infrastructure firm successfully acquired Israeli bitcoin mining hardware manufacturer Spondoolies in 2021, a year known for acquisitions and sky-high valuations of blockchain-based startups.
On the other hand, the CEO of Blockstream, Adam Back, confirmed in a Twitter post that his firm had already raised the funds and is not trying to do so, pointing out the difference between the two statements. This could very well means that the firm is now valued under the $1 billion mark.
Back has been quite vocal in the crypto space recently as he came out against central bank digital currencies or CBDCs. The Blockstream executive stated that according to him, CBDCs are worse than banks and added that BTC is “apolitical, bearer, unseizable money.” Furthermore, he said that CBDCs are “systems of control” and as per his beliefs, a digital version of fiat would be a financial disaster and “worse than paper cash, worse than stablecoins, and much worse than Bitcoin.”
Additionally, Blockstream also recently joined hands with Bitcoin infrastructure service provider Sevenlabs and Poseidon Group to launch Switzerland’s first decentralized security token exchange for Bitcoin called XDEX. The firms aim to remove intermediaries from transactions, allowing peer-to-peer trading.
In the light of similar events, it is crucial to note that despite the bearish market, several crypto firms have been making acquisitions and have raised funds as well. Recently, a reported stated that the world’s biggest crypto exchange Binance will be acquiring Indonesian crypto exchange Tokocrypto. Furthermore, Galaxy Digital Holdings, an investment firm, announced the acquisition of GK8, an institutional digital asset self-custody platform that belonged to Celsius Network.