Blockmetrix, a Dallas-based bitcoin mining business, announced a $43 million Series B fundraising round, bringing total funding to $50 million since June 2021.
The fresh funds will enable Blockmetrix to acquire over 5,000 mining machines, which will be added to the 1,000 miners that were put to work with last year’s $7 million Series A. According to the company, the newest round was oversubscribed and attracted investors from the United States, Australia, and other Asian countries.
Blockmetrix intends to expand swiftly by utilizing the maximum amount of available capital and debt to purchase mining rigs while limiting electricity costs through multiple joint ventures, according to CEO and co-founder Nevin Bannister. “Through [joint ventures], we will get part ownership of a co-location facility to ensure low power prices and a space to house our bitcoin miners,” he explained. The company’s joint venture partners will be in charge of the creation and operation of the co-location facility, which will allow the majority of the investment to go straight into improving hashrates rather than developing infrastructure, according to Bannister.
According to the Blockmetrix website, Bannister is a seasoned entrepreneur who has already established firms worth more than $800 million.
The money comes at a time when cryptocurrencies and broader markets have retreated from their highs of last year, reducing some of the investor excitement. “Our investors were drawn to our management’s demonstrated ability to operate and scale at a high level,” Bannister added. “Our ability to obtain a considerable amount of capital during market instability and geopolitical issues distinguishes us from our competitors,” he added, noting that the majority of the company’s investors were high-net-worth individuals, many of whom had institutional links and experience.
Another advantage is Blockmetrix’s focus on the United States, particularly Texas. According to Bannister, “experts have designated Texas to be the future Bitcoin mining hub.” “Local legislation supports continuing investment in digital asset mining operations in the state in the goal of reviving economic growth and bringing jobs to the area.”
Blockmetrix is now negotiating a joint venture agreement to secure a 100 megawatt (MW) co-location facility in Texas, with the possibility for development to 200MW, according to Bannister.