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HomeBTCAustralian Company Raises $28 Million To Expand Bitcoin Mining Operations

Australian Company Raises $28 Million To Expand Bitcoin Mining Operations

The unstable atmosphere of the cryptocurrency business is not completely stopping builders in the space from continuing their work. Arkon Energy, a firm located in Australia that provides infrastructure for sustainable data centres, has just bought another European-based data centre and funded millions of dollars in order to expand its bitcoin mining activities.

The data centre infrastructure startup, which mines bitcoin using only power derived from renewable sources, successfully secured a total of $28 million during this round of fundraising. Arkon pulls renewable energy that has been stuck in the electrical markets in order to sustainably reduce its expenses.

In addition, Arkon implemented a wider strategy to develop a “vertically integrated green Bitcoin mining platform” by purchasing Hydrokraft AS, which is regarded as one of the premier data centres in Norway that is powered by renewable energy sources.

On the other hand, the Norwegian government presented a proposal on the 6th of October to do away with the lower power tax that was available for Bitcoin miners in the nation. When the tax cut was first implemented in 2016, the country’s Finance Minister said that the electricity market is in a totally different scenario today compared to when it was originally implemented.

In a similar way, the energy manager for the area in the Canadian province of Quebec asked the local government to limit the amount of electricity cryptocurrency miners could use. This was because the industry needs a lot of energy.

Due to the recent market drop and instability in the industry, many of the companies in this field are now working in a tough environment.

One recent illustration of this is the Bitcoin miner Iris Energy, which is now facing a default claim from creditors in the United States that is valued at $103 million. In a document sent to the United States Securities and Exchange Commission on November 7, it is said that the company missed payment deadlines while it was restructuring.

The Hashrate Index has just published its mining report for the third quarter of 2018, which highlighted that low hash prices combined with rising energy costs made the period extremely challenging for the mining business. The price of bitcoin fell below $20,000 for the first time in September, and on October 3, hash rates reached a new all-time high. Despite all of the bad news, there are still businesses that are moving ahead. Canaan, a Chinese company that mines Bitcoin, has said that it plans to expand its operations outside of China and add more research and development projects. 

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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