Bitcoin mining startup Blockmetrix secures $25M from BankProv and CrossTower
- The Bitcoin mining startup has partnered with BankProv and CrossTower.
- The US-based miner will use the $25 million debt facility to buy digital asset mining rigs.
- The startup plans to increase its hashrate to more than 1EH/s (exahashes per second) by the end of the year.
Blockmetrix, a US-based Bitcoin mining startup that’s experienced massive growth since its launch in 2021, has secured a $25 million debt facility to expand its operations via the purchase of additional mining rigs.
The financing includes a fresh $20 million top-up on an initial $5 million deal agreed between the startup and its partners – the crypto-friendly commercial bank BankProv and crypto and digital asset exchange CrossTower.
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Blockmetrix wants to scale its operations
BankProv is a subsidiary of Provident Bancorp, Inc. (NASDAQ: PVBC) and offers unique financing solutions targeted at Bitcoin miners and other crypto-centric firms. The bank’s debt capital solutions crucially facilitate access to traditional forms of capital for its partner, enabling them to scale their operations.
CrossTower, on the other hand, uses its mining offerings to help startups and individuals launch and scale mining. The company provides for this using a range of cutting-edge solutions that help mitigate risks.
The partnership with these two will help Blockmetrix scale and provide “tangible results” to its investors, said CEO Nevin Bannister.
We are thrilled to have the leaders in crypto-mining lending and cryptocurrency exchanges joining us to further our mission to scale our asset-lite operations with speed and bringing tangible results to our investors in a timely manner.”
In March this year, Blockmetrix announced a $43 million Series B equity round, adding to the $7 million raised in its Series A round for a total of $50 million in venture funding.
The startup said it used the Series A funds to purchase and deploy more than 1000 rigs. It also indicated that it would be looking to secure 5,000 or more using the $43 million raised from investors.
According to the startup, the goal is to increase its hashrate from roughly 0.32 exahashes per second (EH/s) to more than 1 EH/s by the end of 2022.