Bitcoin infrastructure company Blockstream will acquire bitcoin hedge fund manager Adamant Capital to serve as the basis of Blockstream Finance, a new division focused on offering bitcoin-focused investment products built on the Liquid sidechain, per a release shared with Bitcoin Magazine.
Blockstream highlighted its recently-launched Blockstream Mining Note (BMN), a Liquid-based security token that is designed to give investors exposure to Bitcoin mining, as an example of the types of financial products it wants to provide through the new division.
“The groundwork laid by Adamant Capital will enable Blockstream to offer more innovative Bitcoin investment products following the successful launch of the Blockstream Mining Note,” per the release.
Adamant Capital, founded by noted Bitcoin influencer Tuur Demeester, is known for its investment research and bitcoin alpha fund. Demeester will serve as an advisor to Blockstream Finance, per the release.
“Adamant Capital was one of the first fund managers to embrace Bitcoin’s fundamental value and promote it as a sound investment for institutions and high-net-worth individuals,” said Adam Back, CEO of Blockstream, in the release. “Their market reports throughout the years have been praised as a frequent source of insight in the Bitcoin community due to their in-depth analysis and accurate forecasts.”
As a sidechain, Liquid runs in parallel to Bitcoin, with a token called “L-BTC” that is pegged to on-chain BTC managed and secured by anointed network members, known as “functionaries.” This allows for significant scaling and flexibility improvements, but requires that users place trust in these functionaries.