Arkon’s $26M Boost Puts Australian Data Center Startup On Global Map
- Arkon Energy is expanding to the U.S. with the acquisition of a site in Ohio, and has raised $26 million in fresh capital from Sandton Capital Partners to fund its aggressive expansion into North America.
- The company uses renewable electricity to mine bitcoin (BTC) and expects the Ohio data center to add up to 3.3 exahash per second (EH/s) to the firm’s hashrate by the end of 2023.
- Arkon hopes the facility will offer a predictable revenue stream by providing server hosting services to bitcoin mining firms, amidst the challenges of the crypto downturn and increasing regulatory scrutiny.
Arkon Energy, a data center infrastructure provider based in Melbourne, Australia, is making big moves in the North American market.
The company has recently acquired a site in Hannibal, Ohio, and is planning to use it as a base for its “aggressive expansion” into the region. This move comes on the heels of the company’s recent success raising $26 million in fresh capital from Sandton Capital Partners, which is in addition to the $28 million it raised last November when it acquired Hydrokraft AS, a renewable energy-based data center in Norway.
CEO Joshua Payne stated that this acquisition is just the beginning, as Arkon Energy plans to make several more acquisitions over the next year. The company hopes to establish a strong presence in North America by providing server hosting services to bitcoin mining firms, using renewable electricity to mine bitcoin (BTC).
The Hannibal data center in Ohio has a capacity of 100 megawatts (MW) and is expected to add up to 3.3 exahash per second (EH/s) to the firm’s hashrate by the end of 2023. Arkon Energy is optimistic that the facility will offer a predictable revenue stream, despite the volatility of the cryptocurrency market.
Bitcoin mining firms have faced significant challenges in the past year due to the crypto bear market and rising electricity costs. Some firms even declared bankruptcy as a result. Looking ahead, there is further uncertainty with bitcoin’s next halving, which is less than a year away and will reduce rewards for mining blocks, challenging firms’ profit margins even further.
Despite these challenges, Arkon Energy remains confident in its ability to navigate the storm and emerge stronger. “Raising capital in the current climate, particularly amidst a crypto downturn and increasing regulatory scrutiny, was indeed a challenge,” Payne said. “However, the uncertain market landscape also presents very well priced buying opportunities for those that are able to navigate the storm and protect the downside.” With its recent acquisitions and strong capital base, Arkon Energy is well-positioned to take advantage of these opportunities and emerge as a leader in the bitcoin mining industry.
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