Bitlayer Labs, the developer of a Bitcoin Layer 2 network, has successfully raised $9 million in a Series A extension funding round. This comes just three months after an earlier $11 million Series A funding round.
The latest funding round was led by Polychain Capital and co-led by Franklin Templeton, with additional backing from other investors including SCB Limited, Selini Capital, G-20.Group, and more. The funding round commenced in early August and concluded last week, according to Bitlayer co-founder Charlie Hu.
Similar to its previous round, Bitlayer's extension round was structured as a simple agreement for future equity (SAFE) with token warrants at the same $300 million valuation. This valuation encompasses both equity and fully diluted token valuation.
With this latest funding, Bitlayer's total funding has now reached $25 million, following the $11 million Series A in July and a $5 million seed round in March. The new capital will support Bitlayer's preparations for the launch of V2 of its Bitcoin scaling network.
Bitlayer claims to be the first Bitcoin Layer 2 network based on Bitcoin finality, which means that transactions or data processed on Bitlayer are settled on Bitcoin's blockchain.
Bitlayer has introduced OpVM, a future-proof verification solution that combines both fraud proofs (BitVM) and validity proofs (based on OP_CAT). This innovation significantly enhances the security level of various protocols within the Bitcoin ecosystem.
Since launching its V1 mainnet in April, nearly 300 projects have been built on Bitlayer's Layer 2 network. Leading decentralized exchanges like Macaron and Avalon Finance are already utilizing the platform, while Desyn serves as a prominent yield-earning DeFi protocol.
Bitlayer is preparing to launch its V2 mainnet, utilizing its OpVM technique, a verification gadget that implements both validity proofs and fraud proofs. The launch is planned for the fourth quarter of this year.
Currently, Bitlayer employs around 70 people and aims to expand its team to enhance institutional adoption, particularly targeting Bitcoin exchange-traded fund issuers like Franklin Templeton and Fidelity.
