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Bitcoin Lightning firm River secures $35M in response to ‘new surge in institutional interest’
While the momentum for Bitcoin Ordinals may have diminished, there remains a robust flow of investments directed towards Bitcoin-exclusive firms. River, a technology and financial services company based in the U.S. focused on Bitcoin (BTC), is the latest to make headlines.
Despite the prevailing bear market, River has revealed a $35 million Series B equity funding round. Kingsway Capital spearheaded the round, with significant contributions from notable figures such as Paypal co-founder Peter Thiel, along with Cygni, Goldcrest, and Valor Equity Partners.
As Alex Leishman, the CEO of River, pointed out, the renewed enthusiasm for Bitcoin is “primarily driven by business and institutional acceptance.” He elaborated:
"This is not driven by hype. The bank failures and bailouts we have witnessed this year have served as a wake-up call, exposing the flaws of the traditional financial system and highlighting why Bitcoin is crucial—it provides a secure pathway to a more robust and transparent global economy."
The San Francisco-based firm operates one of the largest Bitcoin lightning nodes, facilitating payments and managing liquidity within the Bitcoin Lightning Network.
Top Bitcoin Lightning nodes by capacity. Source: River.com
The River Lightning API allows businesses to seamlessly connect with the Lightning Network. This service has already taken a leading role in the Bitcoin payments sector; El Salvador’s Chivo wallet utilizes River for nearly instantaneous and low-cost Bitcoin transactions.
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River was an early adopter of the Lightning Network, akin to major global crypto exchanges like Bitfinex and Kraken.
A snapshot of the River lightning node’s capacity and connected channels. Source: Mempool.space
Furthermore, the largest exchanges globally, Coinbase and Binance, may soon embrace Lightning as the world gradually becomes more receptive to the low-fee, high-throughput payments network. During the Advancing Bitcoin conference in London, River CEO Leishman shared with Cointelegraph:
"I still believe we are in the early stages. Certainly, there are many exciting developments occurring. We’re constructing an extraordinary foundation in terms of protocol."
He emphasized the necessity for more individuals to “approach solutions by addressing real human issues as well. We require more of that.” In light of the recent spike in mainchain transaction fees driven by meme coin fervor, a growing number of exchanges and cryptocurrency firms may look to the Lightning Network as a viable solution.
Related: The state of the Bitcoin Lightning Network in 2023
River is part of an expanding roster of Bitcoin companies that are securing funding during the bear market. Custody service provider Unchained Capital recently raised $60 million, while El Salvador’s educational initiative has attracted significant investments from Bitcoin supporters worldwide.
