Bitcoin infrastructure firm Blockstream announced a $210 million funding round. Fulgur Ventures led this substantial cash inflow, which will primarily focus on Layer-2 Bitcoin Development.

Blockstream will also allocate some of these funds towards mining infrastructure and direct Bitcoin purchases, but according to its press releases, these goals appear secondary.

Blockstream’s Fundraising Rally

Bitcoin infrastructure company Blockstream announced an end to its most recent convertible note financing round on October 15. This fundraising round, led by Fulgur Ventures, raised a total of $210 million. These new funds will primarily go towards Layer-2 (L2) development, mining infrastructure improvements, and direct Bitcoin purchases.

“This fundraise is pivotal in our journey to bridge Bitcoin with broader finance. We’re excited to bring on Michael Minkevich as COO, and to have Fulgur Ventures’ support in advancing Bitcoin finance,” said CEO Adam Back via social media.

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Blockstream first opened its operations in 2014. The firm has remained fairly under the radar as of late, but several points have raised Blockstream’s notoriety. For example, Back was prominently featured as a “key crypto figure” interviewed in the recent HBO documentary to unmask Satoshi Nakamoto.

Additionally, this was not Blockstream’s only major fundraising drive in the second half of 2024. The firm opened a series three funding round for its BMN2 security token in September after raising $7 million in a previous round this July. This round, however, is substantially larger, and the partnership with Fulgur suggests a particular focus on L2 technology.

“We believe in Bitcoin as a next generation politically neutral monetary system, the foundation for decentralized finance of the future. While Bitcoin is an efficient settlement layer, it needs a Layer-2 solution for everyday transactions,” claims Fulgur’s website.

Blockstream’s two L2 solutions, Liquid and Greenlight have slightly different specialties, but both are interoperable with Lightning Network. Liquid alone boasts $1.8 billion in assets issued, and Greenlight runs over 150 thousand live Lightning nodes.

Read More: Beginner’s Tutorial to Start Using the Lightning Network

Although Blockstream mentioned two additional goals, mining infrastructure, and direct Bitcoin purchases, its press release sparsely mentions these secondary goals. So far, all of Blockstream’s media announcements have painted these L2 projects as the main focus. Any specifics on the firm’s secondary goals remain elusive.

Additionally, BeInCrypto reported that Bitcoin L2 solutions have attracted large amounts of funding lately. The L2 projects collectively raised $94.6 million in Q2 2024.