Despite the continued slump in the crypto market, players active in the mining industry have not lost hope for a speedy recovery for the sector. Australia’s Arkon Energy has managed to raise $28 million (approximately Rs. 228 crore) to expand its eco-friendly BTC mining business to the country. Arkon is a renewable data center infrastructure company based in the Australian Capital Territory. The funding round was Blue Sky Capital, a quantitative investment manager and market maker for digital assets.
The benefiting company relies on 100 percent renewable electricity to mine Bitcoin. The company is reportedly extracting renewable energy tied up in the electricity markets to sustainably lower its costs.
“The current market environment, with low prices for Bitcoin and mining equipment, presents an attractive opportunity to take advantage of our unique profitability and access to growth capital,” said Josh Payne, Arkon’s CEO, quoted by UKTN.
Arkon recently acquired Hydrokraft AS, a renewable energy data center in Norway. By securing this investment, the Australian start-up aims to create the infrastructure to fully utilize Hydrokraft’s capabilities.
Crypto miners have been hit by shrunken profit margins after the prices of Bitcoin and other cryptocurrencies dropped significantly.
Meanwhile, energy costs in different parts of the world have increased recently, which has had an undue impact on the crypto mining business. According to a Bloomberg report, Bitcoin miners lost more than $1 billion (approximately Rs. 8,200 crore) during the recent crypto crash.
Several players in the market are now looking to capitalize on the bear market sentiment.
In September, crypto billionaire Jihan Wu reportedly set up a $250 million (almost Rs. 2,043 crore) fund to buy crypto mining machines from ailing sellers. Wu is the founder of blockchain company Bitmain.
Aspen Creek Digital Corp. (ACDC), a new solar-powered Bitcoin miner, raised $8 million (approximately Rs. 65 crore) in Series A funding and Vespene Energy, a company that converts methane gas released from landfills into power for bitcoin mining , recently closed a funding round of $4.3 million (approximately Rs. 35 crore).