Blockware raised $25M in a second oversubscribed round to expand bitcoin mining operations in a state with some of the lowest U.S. industrial electricity costs.
Blockware announced Thursday that they have raised $25M in a second oversubscribed fundraising round.
They plan to use the funds to expand their bitcoin mining operations in Kentucky, and will also install 8,000 more bitcoin mining rigs on its Paducah campus, where it recently purchased 5 acres of land.
The company has already purchased the necessary rigs, and 6,000 more that it has slotted for resale operations to other miners. Funds from previous seed rounds paid for the purchase of all 14,000 rigs.
“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.”
The fast-growing mining company plans to more-than-treble its entire global hashrate in a year. Blockware’s current capacity runs at some 0.3 exahashes per second (EH/s). That’s one quintillion (1,000,000,000,000,000,000) hashes every second.
With profits from bitcoin mining and other mining-related business operations, as well as investor funding, Blockware is hoping to reach a global hash capacity in excess of 1 exahash by mid-2022.
The company noted in the press release that like its previous private placement, the round was oversubscribed. That means investors lined up to offer more than the mining company was seeking at this time, an indication of investor confidence in Blockware’s operations.
In previous rounds, the bitcoin mining firm raised a total of $7 million in funds. That brings its total accumulation of privately equity placements to $32 million.
Kentucky enjoys some of the lowest industrial energy costs for electricity in the United States. That’s good for a business in an industry with a bottom line that’s notoriously sensitive to the rise and fall of energy prices.
Last month, Stoltzner told Kentucky Today:
“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.”
Blockware claimed that one key to their success has been its strong efforts to make inroads with local authorities as it builds operations in the Commonwealth of Kentucky.
Earlier this week, we reported that Bitcoin and other cryptocurrency miners are currently fleeing China after Beijeng’s crackdown on mining operations there. Blockchain research firm Crypto Head recently named the United States the most crypto friendly country in the world.