Expanding in the US and Enhancing AI Cloud Service Project
Australian firm Arkon Energy is making strides in expanding its bitcoin mining operations in the United States, just six months after entering the North American market. To fuel this growth, the company has raised an impressive $110 million in a funding round led by Bluesky Capital Management. Of this funding, $80 million will be allocated to the expansion in the US, while the remaining $30 million will be invested in an artificial intelligence cloud service project at Arkon’s 30MW data center in Norway.
Arkon Energy, established in 2019, had closed a $28 million funding round in November 2022. In June, the company acquired a data center in Hannibal, OH, with a designed capacity of 100MW. Furthermore, the firm has recently acquired an operational facility in Hopedale, OH, with an initial capacity of 50MW, contracted to a hosting client. Additionally, Arkon is set to complete new sites in Texas and North Carolina, providing an additional 150MW of capacity by August 24th.
Capitalizing on the Growing Bitcoin Mining Machine Capacity
Arkon Energy’s founder and CEO, Josh Payne, stated that around 400MW of bitcoin mining machine capacity is being produced monthly. He further emphasized that the US is experiencing significant demand for new hosting capacity, presenting an excellent opportunity for Arkon to establish and operate data centers, low-cost power connections, and optic fiber connections. Payne’s vision aligns with the company’s strategy to capitalize on the scarce resources required for successful bitcoin mining.
This latest expansion comes amidst increasing anticipation for the next bitcoin halving scheduled for April. Industry insiders predict that the event will reveal the winners and losers in the crypto mining sector. The halving will necessitate mining operators to invest in newer, more efficient machines, rendering older equipment unprofitable.
According to Blockworks, Marathon Digital, the largest North American miner by hash rate, plans to augment its bitcoin mining capacity by 390MW through an acquisition. Core Scientific, currently in the process of emerging from bankruptcy, closely follows Marathon in hash rate, and Riot Platforms has recently acquired additional mining capacity through a partnership with MicroBT.
By securing significant funding and expanding its footprint in the US, Arkon Energy aims to establish itself as a prominent player in the growing bitcoin mining industry.