US firm raises $25 million to expand bitcoin-mining business

The US mining company Blockware Mining raised $25 million in its second financing round, oversubscribed.

According to press release, total capital raised reached $32 million.

The funds will be directed toward scaling bitcoin mining in North America.

Blockware Mining said external investments enabled it to acquire 14,000 ASIC miners in the second quarter of 2021. Eight thousand units will be installed at its data centre in Kentucky, and 6,000 were sold to other operators of farms in the United States.

“We have successfully secured a reliable supply chain for mining equipment — not an easy process, which the pandemic has made even tougher. Equipment shortages create a serious barrier for companies looking to enter the business, and we have allocated substantial resources to closing more deals and financing our growth,” said Michael Stoltzner, CEO of Blockware Mining.

The company also plans to build another mining farm in Kentucky with a capacity of 30 MW, with the possibility of expansion in the future to 100 MW.

Blockware Mining expects its hashrate to exceed 1 EH/s by mid-2022, with the figure at 300 PH/s in June 2021.

According to Stoltzner, the United States now accounts for 10% of the Bitcoin network’s computing power.

As noted by Foundry vice president Kevin Zhang, by the end of June as much as 90% of Chinese miners will shut down their equipment due to government measures. CEO MicroStrategy’s Michael Saylor called the latest “a trillion-dollar mistake,” from which the North American bitcoin mining industry will benefit.

According to Poolin vice president Alejandro de la Torre, the era of China’s dominance in the industry can be considered over — miners are leaving the country and moving installations to other regions. Main destinations are the United States, Canada and Kazakhstan.

Bitmain, the largest manufacturer of mining equipment, offered Chinese clients help in organizing business abroad.

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