Blockstream has secured $210 million in debt financing to advance its Bitcoin layer-2 infrastructure strategy. The funding round, led by Fulgur Ventures, comes shortly after the launch of Blockstream’s security token offering in Europe and will be used to support its Bitcoin layer-2 projects, mining operations, and financial product development.
One of Blockstream’s key products is the Liquid Network, a Bitcoin sidechain designed for faster transactions and asset issuance, including stablecoins and tokenized securities. The Liquid Network has facilitated over $1.8 billion in asset issuance to date and holds more than 3,844 Bitcoin onchain. Blockstream’s layer-2 strategy aims to build on Bitcoin’s emerging utility, especially as layer-2 solutions like the Liquid Network and Lightning Network gain traction.
In parallel, Blockstream has been expanding its capital-raising initiatives, including a security token offering backed by the company’s Bitcoin mining operations. This follows the launch of its first security token, Blockstream Mining Note (BMN1), which delivered a 32% Bitcoin return over its three-year term.
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With Bitcoin layer-2s on the rise, driven by innovations like the Ordinals protocol and increased network activity, Blockstream is positioning itself to lead in offering scalable solutions for the Bitcoin blockchain. However, while these solutions are growing, experts emphasize that security remains a key challenge for second-layer networks.
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