Bitcoin Mining Firm Blockmetrix Bags $43 Million Fundraising
The latest financing adds on top of the previous series A funding round that Blockmetrix raised in June last year.
Blockmetrix, a Texas-based Bitcoin mining startup, announced on Tuesday that it raised $43 million in a Series B funding round.
The mining company said that investors in its latest capital raise came from the U.S, Australia, and several countries in Asia. In June last year, Blockmetrix raised $7 million in a Series A funding round that helped it to buy and deploy an initial batch of over 1,000 mining rigs.
Blockmetrix mentioned that it will use the latest funding to purchase more than 5,000 mining rigs to be added to the initial 1000 miners as well as to enable investment in product development and go-to-market. The firm also stated that it plans to grow its cryptocurrency business rapidly by using the maximum amount of available funds and debt to purchase mining rigs, while controlling power costs through various joint ventures.
Nevin Bannister, co-founder and CEO of Blockmetrix, talked about the development and said: “Through joint ventures, we will obtain part-ownership of a co-location facility to ensure low power rates and a place to house our Bitcoin miners.”
Bannister further elaborated that the company’s joint venture partners will be responsible for the development and operation of the co-location facility, which will help channel most of the funding towards increasing hashrates rather than building infrastructure.
“Our investors, who consisted mostly of high-net-worth individuals, were attracted to our management's proven ability to operate and scale at a high level. Our ability to raise a significant amount of funding during market turmoil and geopolitical challenges makes us distinct from our competitors,” Bannister said.
Bannister further mentioned that there is a crypto mining gold rush happening in Texas because of support from the government of Texas state run by Governor Greg Abbott and the Texas Blockchain Council, as well as the state’s historically low energy costs.
“Being in Dallas has been a big selling point for investors because they know that it’s becoming the mining epicentre of the U.S.,” Bannister further explained. He said that the majority of Blockmetrix’s mining rigs are in Oklahoma but the company plans to move them to Texas. He mentioned that currently, Blockmetrix is negotiating a joint venture deal that will secure a 100-megawatt (MW) co-location facility in Texas, with expansion potential to 200MW.
More Than Mining
Founded in 2021, Blockmetrix is a Bitcoin mining company that has built direct relationships with major mining equipment manufacturers. The mining equipment market is highly fluid, but such robust relationships ensure that the firm gets equipment at the best possible times, costs, and quantities.
Blockmetrix is working to maximize the potential of its equipment. This means putting its mining equipment in the right facilities where the firm can get access to strong on-site security and surveillance, remote analytics for monitoring miner condition and performance, low electrical costs, and renewable power.
Mining Bitcoin is only the beginning. Blockmetrix intends to use its Bitcoin mining to take advantage of adjacent opportunities. The firm plans to use the proceeds of its operation to expand its business by acquiring more rigs, researching and developing emerging revenue sources in cryptocurrency, loaning Bitcoin, and pursue large-scale future opportunities like creating a cryptocurrency exchange or mining rig co-hosting facility.
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