Bitlayer Labs raised $9M, bringing its total funding to $25M, as it prepares to launch its Bitcoin Layer 2 network V2 in late 2024.
Bitlayer's V2 will use the OpVM verification system, enhancing Bitcoin's security with a hybrid model combining fraud and validity proofs.
Bitlayer leads Bitcoin Layer 2 projects with over $500M total value locked, supporting nearly 300 projects since its V1 mainnet launch in April.
Bitlayer Labs, the developer of a Bitcoin Layer 2 scaling network, has successfully raised $9 million in a Series A extension funding round. This comes just three months after its initial $11 million Series A round.
Notably, the funding round was led by Polychain Capital and co-led by Franklin Templeton, with additional support from SCB Limited, Selini Capital, G-20.Group, and other investors. This latest funding brings Bitlayer's total capital raised to $25 million.
https://twitter.com/BitlayerLabs/status/1843690601382064360
More so, the extension round, which started in early August and closed last week, was structured as a simple agreement for future equity (SAFE) with token warrants. The valuation remains at $300 million, accounting for both equity and fully diluted token valuation, according to Bitlayer co-founder Charlie Hu.
Additionally, the company has received strong support from prominent backers, indicating confidence in Bitlayer’s future within the Bitcoin scaling space. Franklin Templeton’s involvement is especially notable, as the firm has been increasingly active in the blockchain and cryptocurrency sectors.
Bitlayer's Focus on Bitcoin Layer 2 Scaling
Besides, Bitlayer has built a Bitcoin Layer 2 network that operates with Bitcoin finality. This means that transactions on Bitlayer are settled directly on Bitcoin’s blockchain, which adds an additional layer of security.
In April, the company launched its V1 mainnet, which already hosts nearly 300 projects, including decentralized exchanges such as Macaron and Avalon Finance, and DeFi protocols like Desyn and Jasper Vault.
Furthermore, Hu stated that the new $9 million in funding would support Bitlayer as it prepares to launch its V2 mainnet later this year. The V2 version will use a unique verification system called OpVM.
OpVM combines fraud proofs and validity proofs, improving the security and functionality of the Bitcoin Layer 1 network. This hybrid verification model aims to enable Bitcoin to verify arbitrary computations, which is a key advancement in the ecosystem.
Future Prospects and Expansion Plans
Currently, Bitlayer ranks as the top Bitcoin scaling project in terms of total value locked, which now exceeds $500 million, according to DeFiLlama data. As the company prepares for its V2 mainnet launch, Hu hinted at further developments, including staking and yield opportunities.
Moreover, he emphasized that more infrastructure projects, such as data availability and bridging solutions, are in the pipeline. These initiatives are expected to further expand the utility of Bitcoin beyond simple transactions, making it more attractive to developers and institutions alike.
Hence, Bitlayer plans to continue growing its team to support institutional adoption, particularly by engaging with major financial players like Franklin Templeton and Fidelity. Although the company has yet to announce the launch of its BTR token, Hu advised investors to "stay tuned," suggesting that Bitlayer’s roadmap has several more milestones to achieve in the near future.
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