Blockstream Raises $210M for Bitcoin Lending Funds

Blockstream, a leading Bitcoin development company, has raised a significant $210 million investment to introduce three institutional-quality funds, two of which are specifically designed for Bitcoin lending. Founded by renowned Bitcoin developer Adam Back, Blockstream is focused on providing new financing avenues to institutional crypto investors. The company plans to start accepting external capital in July, with the launch of the funds scheduled for April.

The new funds will introduce Bitcoin-backed lending, USD-collateralized lending, and hedge fund strategies. This move signals Blockstream's rapid growth into institutional crypto finance, offering safe and scalable blockchain financial solutions. The funds will enable institutional crypto investors to access liquidity without selling their Bitcoin positions and provide structured exposure to the Bitcoin markets with improved risk-adjusted returns.

Blockstream's asset management division was launched in January 2023 with the Blockstream Income Fund and Blockstream Alpha Fund. The Income Fund offers loans ranging from $100,000 to $5 million, while the Alpha Fund focuses on infrastructure-based income streams such as Lightning Network node operation. The official launch date for the Bitcoin-backed funds is April 1, with external capital acceptance opening on July 1.

Despite the recent market uncertainty following the collapse of FTX and other major crypto lenders, Blockstream remains confident in its institution-focused strategy. The company emphasizes security, transparency, and compliance in its investment offerings. Blockstream has raised capital in the form of convertible notes, with the most recent round valued at $210 million. The company has also opened a new office in Tokyo, further expanding its commitment to Bitcoin Layer-2 solutions, self-custody technology, and tokenizing real-world assets.

With the launch of its Bitcoin lending funds, Blockstream aims to redefine institutional interaction with Bitcoin. The creation of hedge fund strategies and structured lending solutions introduces a new phase of institutional crypto investors' involvement in blockchain-based finance. As legacy finance companies continue to explore blockchain financial products, Blockstream's move into structured lending and digital asset financing opens the door to regulated and safe institutional investment in the cryptocurrency space.

Blockstream's Bitcoin lending funds mark an important step for institutional cryptocurrency investment. Backed by multi-billion dollar assets and a strong strategy, the company is poised to spur innovation in financial services based on Bitcoin. As international financial institutions increasingly turn their attention to cryptocurrency as a mainstream investment class, Blockstream