Business Market

European blockchain company Bitfury closes $80 million investment round

November 6, 2018

European blockchain company Bitfury closes $80 million investment round

European blockchain technology company The Bitfury Group has closed a $80 million private placement with global institutional and corporate investors. The company shared the announcement on its official blog on November 6.

The European venture fund Korelya Capital, backed by Korean digital giant Naver Group, will come in as the lead investor. Other investors include Macquarie Capital, Dentsu Inc., Armat Group, European fund managers Jabre and Lian Group, Argenthal Capital Partners, MACSF, iTech Capital, and specialized digital asset merchant bank Galaxy Digital led by billionaire trader Mike Novogratz.

The European technology investment bank Bryan, Garnier & Co. acted as an advisor to Bitfury.

“We are excited to partner with Bitfury, a leading solutions provider in blockchain and Bitcoin,” said Mike Novogratz, CEO & Founder of Galaxy Digital. “We are impressed with Bitfury’s unparalleled team, as well as the company’s vision, technical expertise and global reach, all of which are essential to advancing the underlying bitcoin ecosystem.”

According to CEO and co-founder of Bitfury Valery Vavilov, the private placement recognizes the company’s potential to address adjacent market segments in high-performance computing.

“The institutionalization of blockchain and cryptocurrencies, partnered with the opportunity of these emerging technologies, is a natural expansion opportunity that Bitfury will build on — in 2019 and beyond,” Vavilov explained.

Executive vice chairman of Bitfury George Kikvadze noted that with a half billion dollars in revenues, Bitfury is the leading blockchain B2B global technology infrastructure provider at the corporate and government level. According to Kikvadze, the private placement will take Bitfury’s corporate governance to the next level, broaden its financial strategic options, and position itself for the next phase of growth.

Antoine Dresch, co-founder and managing partner of Korelya Capital added that Bitfury has grown from a small startup to the largest western blockchain unicorn.

Founded in 2011, Bitfury is one of the leading security and infrastructure providers for the Bitcoin Blockchain. It also designs and produces innovative hardware that keeps blockchains secure, including mobile datacenters and custom semiconductor chips.

Through its private blockchain framework, Exonum, Bitfury is working with some of the world’s most innovative applications. Notably, Exonum has kicked off its land-titling blockchain pilot to the country of Bermuda this summer.

Bitfury also launched Crystal Blockchain, a blockchain analytics platform for law enforcement and financial institutions this year. In addition, the company is one of the world’s leading contributors to the Lightning Network.