Arkon Energy, uses renewable electricity to mine bitcoin, raised $28 million, led by quantitative investment manager, Blue Sky.
The volatile environment of the cryptocurrency sector is not completely deterring builders from entering the market. An Australian company called Arkon Energy that builds renewable data centers recently raised money to expand its bitcoin mining operations and buy a second data center in Europe.
The data center infrastructure business, which mines Bitcoin using only electricity generated from renewable resources, successfully completed its funding round by raising $28 million. In order to reduce costs in a sustainable manner, Arkon extracts renewable energy from electricity markets.
According to Josh Payne, CEO of Arkon, this kind of market is ideal for growth for a number of reasons:
“The current market climate, with low prices for Bitcoin and mining equipment, offers a compelling opportunity to take advantage of our unique profitability and access to growth capital.”
In addition, Arkon acquired one of Norway’s leading renewable energy-based data centers Hydrokraft AS, as a part of a larger plan to create a “vertically integrated green Bitcoin mining platform”.
On October 6, the Norwegian government, however, sought to end the lower electricity tax that the nation offers to BTC miners. According to the nation’s finance minister, the power market is in a very different state now than it was in 2016 when the tax relief was first introduced.
Similar to this, the energy manager for the Canadian province of Quebec requested that the local authorities turn off power to cryptocurrency miners due to high energy needs. Many businesses in the sector are struggling to prosper due to the present market downturn and industrial unrest.
One recent instance is the BTC miner Iris Energy, which is currently dealing with a $103 million default demand from creditors in the United States. According to a filing made with the U.S. Securities and Exchange Commission on Nov. 7, the company failed to meet payment deadlines while restructuring.
The Hashrate Index recently released its Q3 mining report, which showed that the quarter was particularly difficult for the mining business due to low hash prices and rising energy expenses. After BTC fell below $20,000 in September of this year, hash rates increased to a record high on October 3.
Despite the gloom, some businesses are moving forward. Canaan, a Chinese BTC miner, recently announced ambitions to expand its operations internationally and add additional R&D initiatives.
