Profit Pulse: Crypto Chemistry

This week’s highlight covers Arkon Energy’s $110M funding package, which was the largest private funding round for a Bitcoin mining company in 2023.

In reviewing the deal, we were impressed by the team’s consistent fundraise track record, corporate development progress, and forward-looking roadmap.

The company’s CEO reported that Arkon commenced 2023 with an operating capacity of 30 megawatts and concluded the year with an impressive portfolio totaling 330 megawatts (expected to be fully operational by Q3’24).

As highlighted in the TechCrunch article, “1 megawatt can power between 400 to 900 homes per year” which would suggest that Arkon’s current capacity reaches between 132K to 297K homes per year.

Table of Contents

• Profit Pulse: Crypto

  • Deal of the Week: Arkon Energy

  • Deal Flow Takeaways

    • Private Fundraises

    • M&A

    • Public/Fund Financings

Deal of the Week: Arkon Energy

• Arkon Energy

  • Founded: March 2019

  • Team Size: 2-10

  • Location: Australia, U.S, and Norway

  • Chains: Bitcoin

Problem: Compute power is in high demand from Bitcoin miners and AI clients

Solution: The U.S. has an abundance of underutilized power generation assets

Core Differentiation: Utilizing renewable energy sources for Bitcoin mining as well as AI cloud services

Deal Flow Takeaways

Fundraises: 3 deals; $129.7M identified
M&A: 2 deals; no financial terms disclosed
Public / Funds: 2 miscellaneous links regarding broad market trends

Private Fundraises

Arkon Energy, a U.S.-based data center company, raised $110M to expand its U.S. bitcoin mining capacity as well as its AI cloud services in Norway.

Medallion, a platform for promoting album releases and merch drops, raised $13.7M with participation from Dragonfly and Lightspeed Faction. The platform will soon allow artists to sell NFTs to fans.

Addressable, a web3 growth marketing startup, raised $6M with participation from Bitkraft Ventures, Karatage, Viola Ventures, Fabric Ventures, Mensch Capital Partners, and North Island Ventures.

M&A

Solscan, a Singapore-based Solana block explorer, was acquired by Etherscan.

3iQ, a digital asset manager known for its bitcoin ETF in Canada, sold a majority stake of the company to Monex Group, a Japanese company that also owns TradeStation.

Public/Fund Financings

Crypto VC funding in 2023 fell by 68% to $10.7B, compared to $33.3B in 2022.

Extended seed rounds are becoming more prevalent in crypto fundraising.

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