Bitcoin infrastructure firm Blockstream to acquire bitcoin hedge fund manager Adamant Capital to serve as the base for Blockstream Finance, a new division focused on delivering bitcoin-focused investment products built on the Liquid side chain, according to a press release shared with Bitcoin Magazine.
Blockstream highlighted its recent Blockstream Mining Note (BMN), a liquid-based security token designed to give investors exposure to Bitcoin mining, as an example of the types of financial products it wants to deliver through the new. division.
“The groundwork laid by Adamant Capital will enable Blockstream to offer more innovative Bitcoin investment products after the successful launch of the Blockstream Mining Note,” the statement said.
Adamant Capital, founded by famous Bitcoin influencer Tuur Demeester, is known for its investment research and alpha Bitcoin fund. Demeester will serve as an advisor to Blockstream Finance, the statement said.
“Adamant Capital was one of the first fund managers to embrace the core value of Bitcoin and promote it as a wise investment for high net worth institutions and individuals,” Adam Back, CEO of Blockstream, said in the statement. “Their market reports over the years have been hailed as a frequent source of information in the Bitcoin community due to their in-depth analysis and accurate forecasting.”
As a side chain, Liquid works alongside Bitcoin, with a token called ‘L-BTC’ which is attached to the BTC chain managed and secured by anointed network members, called ‘officials’. This allows significant improvements in scalability and flexibility, but requires users to trust these officials.