Eco-friendly BTC mining startup raises $28 million

Eco-friendly BTC mining startup raises $28 million

Arkon Energy, an Australian data-focussed startup, raised $28 million to expand its BTC mining operations. The fundraising was led by Blue Sky Capital, a digital assets market maker and quantitative investment managing firm. The funds will be added to $2.6 million previously raised by company as part of its pre-seed funding.

In addition to raising the money, Arkon Energy acquired European-based data center Hydrokraft AS, one of Norway’s top data centers using renewable energy.

Why is this development important?

Such venture capital fund transfers seem to suggest that environmentally conscious miners in the space have better chances of survival. Speaking to CoinTelegraph about it, Arkon CEO Josh Payne said the current market scenario presents the company with “a compelling opportunity.”

The latest fundraising success must therefore be seen in the light of several recent developments, including the FTX collapse. The current turmoil in the crypto market has made things tougher for the Bitcoin mining industry. The falling prices and surging energy costs have led to their share of bankruptcies and price plunges for publicly traded companies. Additionally, the energy-hungry mining process has faced flak from environmentalists and governments for a while now. In this context, mining companies like Arkon have turned to low-cost energy and more innovative business models to stay alive.

Other companies that have gone down a similar road include new solar-powered Bitcoin miner, Aspen Creek Digital Corp. (ACDC), and Vespene Energy, a company that converts methane released from landfills into power, which is then channeled into BTC mining.

Further details about the fundraising and Hydrokraft

One of the key returning investors was blockchain investment firm Kestrel0x1. The startup also attracted several strategic investors, including the leading provider of trade services and renewable energy products, Linked Group Services, and a suite of other angel investors.

The latest acquisition is part of the company’s plan to create a vertically integrated green BTC mining platform. Hydrokraft’s data centers are powered entirely by hydroelectricity. They will have an operating capacity of 30 megawatts (MW), which can be expanded to 60 MW.

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