Digital possession facilities company Blockstream has raised $125 million to fund its Bitcoin (BTC) mining colocation services, underscoring heightened demand for its institutional hosting services amidst the bearish market.

The $125 million raise was financed by convertible note and a secured loan, Blockstream announced on Jan. 24. Equity capital company Kingsway Capital led the convertible note raise, with extra participation from Fulgur Ventures. Cohen & Cohen Capital Markets, part of J.V.B. Financial Group, advised Blockstream on the deal.

The funding will allow Blockstream to broaden mining capacity for institutional hosting clients– a sector the company stated was “resilient” in the face of Bitcoin rate volatility compared to so-called prop miners. This latter segment is “more directly exposed to Bitcoin rate volatility and compressed margins,” Blockstream said.

“We remain concentrated on reducing danger for institutional bitcoin miners and allowing business users to develop high-value usage cases,” said Erik Svenson, Blockstream’s president and chief monetary officer.

Related: BlockFi to offer $160M in Bitcoin miner-backed loans: Report

A drawn-out bear market in crypto, punctuated by numerous prominent personal bankruptcies that culminated in the FTX collapse, put considerable pressure on Bitcoin miners. In December, Bitcoin mining giant Core Scientific filed for 11 personal bankruptcy due to plunging revenues.

Mining operation Greenridge avoided personal bankruptcy in December by getting a $74 million lifeline from New York Digital Investment Group.

As reported by Pandoraland, Bitcoin miners’ worst days might have passed as hashrate supported and revenue margins gradually improved towards the end of 2022. However, the industry stays under pressure, specifically for little- and mid-sized miners with breakeven prices above $25,000 BTC.