Bitfinity, a blockchain project developing a Bitcoin Layer 2 network based on the Internet Computer protocol, raised $7 million in total funding.

Investors included Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital and Draft Ventures, Bitfinity co-founder Max Chamberlin told The Block in an interview. The funding was realized in two parts — a seed round of about $1 million in 2021 and a growth round of the rest of the amount that closed last June — Chamberlin said. He added that both were token rounds, with the second round bringing Bitfinity’s valuation to $130 million.

Bitfinity has chosen to announce the funding at this time to generate anticipation leading up to the mainnet launch of its network, Chamberlin said. Currently in the testnet phase, Bitfinity plans to …