Despite the ongoing flump in the crypto market, players operating in the mining industries have not lost hope for the sector’s speedy recovery. Australia’s Arkon Energy has managed to raise $28 million (roughly Rs. 228 crore) in order to expand its eco-friendly BTC mining operations into the country. Arkon is a renewable data centre infrastructure company based out of the Australian Capital Territory. The funding round was Blue Sky Capital, which is a quantitative investment manager and digital assets market maker.
The benefitting firm relies on 100 percent renewable electricity to mine Bitcoin. The company reportedly extracts renewable power trapped in electricity markets to sustainably lower its costs.
“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,” Josh Payne, the CEO of Arkon was quoted by CoinTelegraph as saying.
Arkon recently purchased Hydrokraft AS, a renewable energy-based data center in Norway. With securing this investment, the Australian startup intends to create the infrastructure to use Hydrokraft’s capabilities in full capacity.
Crypto miners have been hit by shrunken profit margins after the prices of Bitcoin and other cryptocurrencies slashed substantially.
Meanwhile, the power costs in several parts of the world rose in recent times, which too heavily impacted the crypto mining business. As per a Bloomberg report, Bitcoin miners lost over $1 billion (roughly Rs. 8,200 crore) during the recent crypto crash.
Several players in the market are now looking to take advantage of the bear market sentiment.
In September, crypto billionaire Jihan Wu reportedly set up a $250 million (nearly Rs. 2,043 crore) fund to buy crypto mining machines from distressed sellers. Wu is the founder of blockchain firm Bitmain.
Aspen Creek Digital Corp. (ACDC), a new solar-powered Bitcoin miner, raised $8 million (roughly Rs. 65 crore) in Series A funding and Vespene Energy, a company that converts methane gas released from landfills into power for bitcoin mining, closed a $4.3 million (roughly Rs. 35 crore) funding round in recent times.