Arkon Energy Raises $28 Million, Acquires Hyrdokraft AS

Arkon Energy, a renewable energy data centre infrastructure provider, just announced the closing of a US $28 million funding round. Also, the Australian firm has recently finalized its purchase of Hydrokraft AS, a leading Norwegian data centre powered by renewable energy.

The deal was funded by a mix of senior debt and equity funding from Arkon Energy. Kestrel 0x1, Shima Capital, and a slew of other entities joined Blue Sky Capital as equity investors. Also, partners from Blue Sky, Kestrel 0x1, and Barkers Point Capital Advisors will join the company’s board of directors as a result of the deal.

How Arkon Energy is leveraging the current market conditions

Arkon Energy’s bitcoin mining operations run on renewable power. It has one of the industry’s lowest average production costs since it uses renewable power surpluses in areas with limited electricity supplies. Arkon is able to acquire market share through the purchase of distressed assets and businesses due to its robust bank sheet, minimal debt, and low-cost base for power.

Arkon Energy’s ability to raise funding in an environment where the largest Bitcoin miners in the world are battling with excessive expenses and over-leveraged balance sheets demonstrates the company’s distinctive value proposition. The present market slump has had a negative impact on mining businesses that did not establish enough runway prior to the market downturn. Arkon Energy is well-positioned to benefit from the economic climate, which has left its rivals struggling to survive because the company has always placed a premium on maintaining a low-debt financial strategy.

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

With a present working capacity of 30 MW and a maximum capacity of 60 MW, Hydrokraft is one of the largest data centres in all of Europe. Since its completion in 2021, the facility has been running entirely on renewable, cheap hydropower. Arkon intends to get right to work, expanding the facility’s supporting infrastructure so that it may actualize its maximum potential.