The turbulent climate of the cryptocurrency industry is not putting an end to builders in the space entirely. Arkon Energy, an Australian renewable data center infrastructure company, recently raised millions to expand its Bitcoin
Mining operations and acquisition of another European 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 captured in the electricity markets to sustainably lower costs.
Arkon CEO Josh Pine said that this type of market creates the perfect storm for growth due to a multitude of factors:
“The current market climate, with declining prices for bitcoin and mining equipment, provides a compelling opportunity to take advantage of our unique profitability and access to growing capital.”
In addition, Arkon has 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 proposed eliminating the reduced electricity tax available to BTC miners in the country. The country’s finance minister said the energy market is in a very different situation now compared to when the tax breaks first began in 2016.
Similarly, in the Canadian province of Quebec, the district energy director asked the local government to cut off electricity to crypto miners due to high energy demand.
Related: Bitcoin Miners Rethink Business Strategies for Long-Term Survival
The current market downturn and industry turmoil has created a harsh environment for many companies in this field.
One recent example is Iris Energy, the BTC miner, which is now facing a $103 million default claim from US creditors. A filing with the US Securities and Exchange Commission on November 7 alleges that the company failed to restructure to meet payment deadlines.
Hashrate recently released its third-quarter mining report, which revealed that falling retail prices combined with rising energy costs made the quarter particularly challenging for the mining industry. After BTC fell below $20,000 in September, the hash rate soared to a new all-time high on October 3.
Amid the doom and gloom, some companies are moving forward. Chinese mining company BTC Canaan recently announced plans to expand its operations globally and include new research and development projects.