The Bitcoin mining sector in the USA is booming, with Akron Energy, an Ohio-based data center infrastructure provider, raising an impressive $110 million in a recent private equity round. The capital injection, led by alternative investment manager Bluesky Capital Management, is aimed at increasing the megawatt capacity of Akron Energy's data centers, primarily dedicated to Bitcoin mining operations. Let's unpack the details of this ambitious initiative.
Major Expansion with $110 Million
Akron Energy has successfully raised a substantial $110 million in financing, led by Bluesky Capital Management, with additional participation from Kestrel 0x1 and Nural Capital. The initiative is aimed at significantly boosting the megawatt capacity of Akron Energy's data centers. With an injection of $80 million, the company will expand its data centers by a further 200 megawatts, strategically located in Ohio, North Carolina and Texas. The aim is to increase the company's total megawatt capacity by 130% by June 2024, according to information reported by TechCrunch.
Akron Energy CEO Josh Payne points out that these data centers will primarily host institutional-grade Bitcoin mining companies, consolidating Akron Energy's position in the sector.
Targeted investment in Cloud Artificial Intelligence
30 million allocated to Norwegian Data Center. In addition to U.S. expansion, Akron Energy plans to invest the remaining $30 million in cloud infrastructure dedicated to artificial intelligence, located in its Norway-based data center. This strategic decision underlines the company's commitment to balanced growth, embracing emerging technologies beyond simple Bitcoin mining.
Bitcoin mining outlook
Revenues may have peaked in November 2023. According to The Block's data dashboard, revenues from Bitcoin mining reached $1.16 billion in November 2023, marking the highest level since April 2022. Transaction fees account for a significant portion of this sum, amounting to $142.2 million. This trend underlines the robustness of the Bitcoin mining sector and provides a favorable context for Akron Energy's expansion.
