Recently, crypto mining company Aspen Creek Digital Corporation (ACDC) reported raising an investment of 8 million USD in its Series A funding round. Primarily the funding round was led by blockchain investment firm Polychain Capital and crypto financial services company Galaxy Digital.
CEO Alexandra DeCosta said the funds will be allocated to its second crypto mining facility in Texas. The facility will have a mining capacity of 30 megawatts (MW) and also a solar-based crypto mining firm with a capacity of 87 megawatts. The mining facility is expected to be fully functional in the upcoming months of this year, he added.
ACDC became successful in raising a significant amount amidst somewhat tough times for the crypto mining space and the broader crypto market. Many crypto miners were in a beleaguered situation and struggling to continue their operations due to a lack of enough liquidity given various reasons.
Major crypto miners in the space including Marathon Digital, Riot Blockchain, and Valkyrie Bitcoin Miners ETF reported seeing a decline of upto 60% in their stock prices. Also Compute North, one of the largest data centers for bitcoin mining, filed for bankruptcy amidst the recent crypto winter. This came in the wake of a drop in revenue and profitability in the crypto mining space.
The crypto mining sector in an embattling situation also made investors make distance from stepping in to fund mining firms. This situation ends up making investors raise funds for further expansion and even carrying the operations further.
ACDC’s successful fundraising comes as a surprise amidst such a situation. Many believe the reason behind crypto mining firms being able to do this is their tactic of taking the power first approach. Following the approach, the company ensures to secure power and infrastructure in advance for its operations related to crypto mining, and then it goes to look forwards to raising money. Such an approach makes the firm unique from other contenders in the space.
Source: https://www.thecoinrepublic.com/2022/09/28/crypto-mining-firm-aspen-creek-raised-8-mn-usd-in-series-a-funding/