Dallas-based bitcoin (BTC) mining startup Blockmetrix announced a $43 million Series B funding round, bringing total funding to $50 million since June 2021.
The new monies will allow Blockmetrix to secure more than 5,000 mining rigs to be added to 1,000 miners put to work with last year’s $7 million Series A. This latest round was oversubscribed, said the company, and included investors from the U.S, Australia and several Asian countries.
Blockmetrix plans to grow rapidly by using the maximum amount of available capital and debt to buy mining rigs, while controlling power costs through various joint ventures, CEO and co-founder Nevin Bannister told CoinDesk. “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,” he said. The company’s JV partners will be responsible for the development and operation of the co-location facility, which will help channel the majority of the funding directly towards increasing hashrates rather than building infrastructure, Bannister explained.
Bannister is a professional entrepreneur, having previously founded startups that have sold for a combined value of over $800 million, according to the Blockmetrix website.
The funding comes at a time when cryptocurrency and broader markets have pulled back from their peaks last year, dampening some of the euphoria among investors. “Our investors were attracted to our management’s proven ability to operate and scale at a high level,” said Bannister. “Our ability to raise a significant amount of funding during market turmoil and geopolitical challenges makes us distinct from our competitors,” he added, noting the company’s investors consisted mostly of high-net worth individuals, many of whom have institutional ties and experience.
Another plus is Blockmetrix’s U.S focus, Texas in particular. “Experts have declared Texas to be the next Bitcoin mining capital,” Bannister said. “Local legislation encourages continued investment in digital asset mining operations in the state with the hopes of revitalizing economic growth and bringing jobs to the area.”
Blockmetrix is currently negotiating a JV deal which will secure a 100 megawatt (MW) co-location facility in Texas, with expansion potential to 200MW, Bannister told CoinDesk.