Arkon Energy recently raised millions to expand its Bitcoin mining operations 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 extracts renewable power trapped in electricity markets to sustainably lowers its costs.
In addition, Arkon acquired one of Norway’s leading renewable energy-based data centers, Hydrokraft AS, as a part of a larger plan to create a vertically integrated green Bitcoin mining platform.
However the Norwegian government proposed eliminating the reduced electricity tax available for BTC miners in the country. The country’s finance minister said the power market is in a completely different situation now compared with when it first initiated the tax break in 2016. Similarly, in the Canadian province of Quebec, the energy manager for the region asked the local government to cut power from crypto miners due to high energy demands.
The current market downturn and industry turmoil have created a rough environment for many companies in the space. One recent example is BTC miner Iris Energy, which is now facing a default claim worth $103 million from creditors in the United States. A filing with the U.S. Securities and Exchange Commission alleges that the company failed in restructuring to meet payment deadlines.
