Arkon Energy Secures $28M and Concludes Hydrokraft Acquisition to Boost Bitcoin Mining

The 100% sustainable data center infrastructure business Arkon Energy has announced the successful closing of a US $28 million fundraising. The Australian business has also completed acquiring Hydrokraft AS, one of Norway’s top data centers using renewable energy.

The acquisition of Hydrokraft is a component of a bold strategy to build a vertically integrated green bitcoin mining platform that has electricity sovereignty, benefits from regional diversity, and has a strong bank sheet. By doing this, Arkon will be able to avoid the traps that have limited other prominent actors in the industry.

Bitcoin mining is done by Arkon Energy using sustainable energy. One of the lowest average production costs in the industry is guaranteed by its sustainable data centers, which make use of surplus renewable energy in restricted electricity markets. Modern immersion cooling technology is also used by the business to increase the effectiveness of its equipment.

Josh Payne, the CEO, and Nathan Townsend, the COO, both of whom have extensive backgrounds in the operation of Bitcoin, financial markets, and energy infrastructure, are in charge of the business. A group of seasoned executives with extensive backgrounds in the development of energy infrastructure and bitcoin mining complements them.

With a potential operational capacity of 60MW and a present operating capacity of 30MW, Hydrokraft is one of the biggest data centers in Europe. The project was completed in 2021 and is entirely powered by affordable, sustainable hydroelectricity. To make full use of the facility’s capabilities, Arkon intends to start building up additional infrastructure right now.

Commenting on the acquisition, Arkon CEO Josh Payne said:

“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. We are excited to have completed this transaction and we look forward to executing on several additional growth opportunities in the near future.”

Barry Kupferberg, Managing Partner of Barkers Point Capital Advisors which helped finance the deal, added:

“In a period in which the largest bitcoin miners in the world are struggling with high costs and over-leveraged balance sheets, the ability of Arkon Energy to attract capital highlights its unique value proposition. Distressed cycles produce winners and losers and Arkon is well positioned to be a winner.”

Senior debt and equity funds were used by Arkon Energy to fund the deal. Kestrel 0x1 (prior round lead investors), Shima Capital, and a number of additional parties participated as equity investors, with Blue Sky Capital serving as the lead investor. Partners from Blue Sky, Kestrel 0x1, and Barkers Point Capital Advisors will join the main board as an outcome of this transaction.

Mining businesses that didn’t build enough of a runway have been negatively impacted by the current market slump. Their predicament has been made worse by the huge debt they have racked up by borrowing against future income. Many mining businesses have been forced to shut down or drastically reduce operations as a consequence.

Arkon Energy is well-positioned to benefit from the economic outlook that has seen rivals struggle to survive because it has targeted a low-debt financial plan from its inception. Through the acquisition of troubled assets and businesses, Arkon can increase its market share thanks to its solid financial sheet, minimal debt, and low-cost power.

Source: https://thenewscrypto.com/arkon-energy-secures-28m-and-concludes-hydrokraft-acquisition-to-boost-bitcoin-mining/