Australian company raises $28 million to expand Bitcoin mining capabilities

The turbulent climate of the crypto industry is not putting an end to builders in the space. Arkon Energy, an Australian renewable data center infrastructure company, recently raised millions to expand its Bitcoin (BTC) mining business and acquired another European-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 sources renewable energy from the electricity markets to sustainably lower its costs.

Arkon CEO Josh Payne said that this type of market creates the perfect storm for growth due to many factors:

“The current market environment, with low prices for Bitcoin and mining equipment, presents an attractive opportunity to take advantage of our unique profitability and access to growth capital.”

In addition, Arkon acquired one of Norway’s leading renewable energy 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 to abolish the reduced electricity tax for BTC miners in the country. The country’s finance minister said the energy market is now in a completely different situation than when it first started the tax break in 2016.

Similarly, the energy manager for the region in the Canadian province of Quebec asked the local government to cut off the flow of cryptominers due to high energy demand.

Related: Bitcoin miners are rethinking business strategies for long-term survival

The current market downturn and industry turmoil have created a rough environment for many companies in the space.

A recent example is BTC miner Iris Energy, which is now facing a $103 million default claim from creditors in the United States. A filing with the US Securities and Exchange Commission on Nov. 7 alleges that the company failed to restructure to meet payment deadlines.

The Hashrate Index recently released its Q3 mining report, which revealed that low hash prices alongside rising energy costs made the quarter especially tough for the mining industry. After BTC fell below $20,000 in September, hash rates rose to a new all-time high on October 3.

In the midst of doom and gloom, some companies are moving forward. Chinese BTC miner Canaan recently announced plans to scale its operations globally and incorporate new research and development projects.