The turbulent climate of the cryptocurrency industry is not stopping the builders of the space entirely. Arkon Energy, an Australian renewable data center infrastructure company, recently raised millions to expand its Bitcoin (BTC) mining operations and acquired another Europe-based data center.
The funding round was completed with $28 million raised by the data center infrastructure company, which uses 100% renewable electricity to mine BTC.. Arkon extracts the renewable energy trapped in the electricity markets to reduce its costs in a sustainable way.
Arkon CEO Josh Payne said this type of market creates the perfect storm for growth due to many factors:
“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.”
In addition, Arkon acquired one of Norway’s leading renewable energy-based data centers, Hydrokraft AS, as part of a larger plan to create a “vertically integrated green Bitcoin mining platform.”
However, on October 6, the Norwegian government recently proposed to remove the reduced tax on electricity that is available to BTC miners in the country. The country’s finance minister said the energy market is in a completely different situation now compared to when the tax cut began in 2016.
Similarly, in the Canadian province of Quebec, the region’s energy manager asked the local government to cut off power to cryptocurrency miners due to high energy demands.
The current market downturn and industry turmoil have created a difficult environment for many space companies to thrive.
A recent example is that the BTC miner Iris Energy is now facing a claim for non-payment of USD 103 million from its creditors in the United States. A petition filed with the US Securities and Exchange Commission on November 7 alleged that the company had missed payment deadlines in its restructuring.
The Hashrate Index recently released its Q3 mining report, which revealed that low hash prices, coupled with rising energy costs, made the quarter particularly tough for the mining industry.. After BTC fell below $20,000 last September, hash rates hit a new all-time high on Oct. 3.
In the midst of the nightmare, some companies are moving on. Chinese BTC miner Canaan recently announced plans to expand its operations globally and include new research and development projects.
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