Blockware announced on Thursday that a second oversubscribed fundraising round had raised $25 million.
Blockware Raise Money In Oversubscribed Round
North American bitcoin mining company Blockware Mining today announced that it has raised over $25 million in a second oversubscribed funding round, bringing the company’s total capital raised to more than $32 million.
They want to utilize the money to grow their bitcoin mining activities in Kentucky, as well as to add 8,000 additional bitcoin mining machines to their Paducah campus, which they recently purchased 5 acres of land for.
The company has already purchased the requisite rigs, as well as another 6,000 that will be used for resale to other miners. All 14,000 rigs were purchased with funds from earlier seed rounds.
“Currently, only an estimated 10% of the hash rate worldwide is generated in the U.S. By providing low hosting rates, Blockware Mining will create better worldwide distribution of the Bitcoin network while making the hash rate in the U.S. more globally competitive.”
In a year, the fast-growing mining business intends to more than triple its global hashrate. The current capacity of Blockware is 0.3 exahashes per second (EH/s). Every second, there are one quintillion (1,000,000,000,000,000,000) hashes.
Blockware hopes to attain a global hash capacity of more than 1 exahash by mid-2022, using income from bitcoin mining and other mining-related businesses, as well as investor capital.
The round, like its prior private placement, was oversubscribed, according to the company’s news statement. This indicates that investors were willing to offer more than the mining business was looking for at the time, indicating investor confidence.
The bitcoin mining company has already raised $7 million in funding rounds. This takes the company’s total private equity investments to $32 million.
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Kentucky Is Cooperative
Kentucky has some of the most affordable industrial electricity bills in the country. That’s fantastic news for a company in a sector where the bottom line is notoriously affected by fluctuations in energy prices.
Stoltzner told Kentucky Today last month:
“Obviously, for bitcoin mining your power usage is a large percentage of your operating costs. So we were looking for a location that gave us favorable power rates and on top of that to acquire land that was in good proximity to a substation.”
One of the keys to Blockware’s success, according to the company, has been its robust efforts to establish inroads with local authorities as it expands its operations in Kentucky.
Earlier in May, cryptocurrency miners were fleeing China following a crackdown in Beijeng on mining operations. Crypto Head, a blockchain research firm, recently ranked the United States the world’s most crypto-friendly country.
Headquartered in Chicago, Illinois, Blockware Mining considers itself a diversified Bitcoin mining infrastructure and colocation service provider. The company seeks to offer hardware and hosting packages to miners who wish to get up and running quickly.
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Feature image from Unsplash, chart from TradingView.com