Bitcoin mining giant BitFury has raised another $20 million in funding from investors including DRW Venture Capital, iTech Capital and Georgian Co-Investment Fund, which led an earlier round.
The investment will go towards further expanding the company’s footprint. It is already one of the world’s largest single contributors of hashing power to the mining network, and it looks to further its position through projects like its 2 million sq.ft. tech park.
Combined with two previous rounds of $20 million each, BitFury has now raised $60 million to date. It is thus one of the best funded companies in the industry, and by far the leader amongst mining companies.
The round shows that investors still have confidence in the mining sector, despite a turbulent history spotted with scams, bankruptcies and lawsuits. To the contrary, investors see the industry consolidating toward a select few dominant players such as BitFury, Spondoolies-Tech and KnC. With their cutting edge technologies, investors believe that they will withstand lower bitcoin prices, future reward halvings and complications arising from technical issues such as block size limits.
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The announcement was also themed around the emergence of Bitcoin’s blockchain technology, whose newfound relevance to mining was recently highlighted by 21 Inc’s proposed innovations and BitFury’s ‘light bulb’ miner.
Gleb Davidyuk, Managing Partner of iTech Capital said:
“Blockchain is one of the most promising and disruptive technologies we’ve seen in the FinTech industry for the past 15 years. We’ve kept an eye on Blockchain since its inception and are confident in its global recognition and following success. For a professional investor it is always a welcoming opportunity to recognize the early trends and to support a recognized leader within the industry.”
Investor confidence may therefore stem less from bitcoin mining in its classical form, whose future may be uncertain, and more from its role in blockchain technology, envisioned by many as one of the most powerful tools for the future.