Arkon Energy Secures $110M Investment for Expanding US Bitcoin Mining and AI Cloud Service Launch in Norway

Leading the round, Bluesky Capital Management spearheaded Arkon Energy’s recent $110 million private funding. Notable contributors included Kestrel 0x1 and Nural Capital.

Commencing operations in 2021 with a 5-megawatt site in Australia, Arkon has rapidly expanded, boasting over 130 megawatts and venturing into multiple countries, including the U.S. and Europe.

CEO Josh Payne highlighted the allure of their sites for both bitcoin miners and high-power computing clients in AI and machine learning. To put this into perspective, one megawatt can sustain between 400 to 900 homes annually, as per the Nuclear Regulatory Commission.

Of the total investment, approximately $80 million will fund the acquisition of an additional 200-megawatt capacity across fresh data centers in Ohio, North Carolina, and Texas, aiming for a 130% increase in total megawatts by mid-2024. This expansion supplements Arkon’s existing 100-megawatt facility in Ohio, procured in June, Payne specified.

The U.S. market is a key focus due to its substantial domestic demand, robust energy sector, political stability, and institutional investor appeal, Payne emphasized. Leveraging underutilized, low-cost, and renewable power sources, Arkon foresees vast potential in the U.S. energy landscape.

Arkon’s portfolio predominantly houses institutional-grade bitcoin mining firms within its U.S. data centers, acting essentially as a landlord owning the foundational infrastructure assets.

Their strategic business model revolves around acquiring distressed data center assets worldwide. Payne highlighted the unprecedented demand for diverse data center capacities globally, particularly in the U.S., emphasizing the need for professionally managed electrical infrastructure to meet these requirements.

Allocating the remaining $30 million, Arkon aims to develop an AI cloud service project in its Norwegian data center.