Australia’s Arkon Energy Bags Millions to Expand Its Green BTC Mining Operations

The benefitting firm relies on 100 percent renewable electricity to mine Bitcoin.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 18 November 2022 18:31 IST

Australia’s Arkon Energy Bags Millions to Expand Its Green BTC Mining Operations

Photo Credit: Bloomberg

Bitcoin miners lost over $1 billion (roughly Rs. 8,200 crore) during the recent crypto crash

Highlights

BTC mining has become a rather flourishing sector in Australia
Arkon recently purchased Hydrokraft AS, a renewable energy facility from
Arkon is looking to use funding to finetune BTC mining operations

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.

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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.

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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.

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Further reading: Cryptocurrency, Australia, Arkon Energy, Blue Sky Capital

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More