Crypto Mining Giant Bitfury Raises $80M USD In Private Placement

Blockchain, Investing, News | November 6, 2018 By:

Crypto mining giant Bitfury has raised $80 million in a closed funding round led by Korelya Capital. The private placement also saw participation from South Korean Internet giant Naver Group, Asian institutions Macquarie Capital and Dentsu Japan, as well as Michael Novogratz’s Galaxy Digital.

Founded in 2011, Bitfury is full service blockchain technology company and one of the largest private infrastructure providers in the blockchain ecosystem. It also operates mining farms in Canada, Norway, Iceland and the Republic of Georgia. It currently employs 700 people in 15 countries across North America, EMEA and Asia.

Bitfury said the funds will be used to support its growth and build on its unique technology expertise to expand in adjacent market segments such as artificial intelligence (AI).

“2018 has been a year of incredible expansion for Bitfury,” said Valery Vavilov, CEO and co-founder of Bitfury. “This private placement reflects our achievements, and it recognizes our ability to address adjacent market segments in high-performance computing, including in emerging technologies like artificial intelligence (AI). The institutionalization of blockchain and cryptocurrencies, partnered with the opportunity of these emerging technologies, is a natural expansion opportunity that Bitfury will build on — in 2019 and beyond.”

In 2018, the company announced major deveolopments and new products, such as its sixth generation of chip design, the Bitfury Clarke ASIC, as well as a new series of high-performance computing servers, the Bitfury Tardis. It also expanded its land-titling blockchain pilot to the country of Bermuda.

“We are joining Bitfury as a lead investor at an incredibly exciting time for both the company and the blockchain ecosystem,” said Antoine Dresch, co-founder and managing partner of Korelya Capital. “Bitfury has grown from a small startup to the largest western blockchain unicorn, equipped with worldclass leadership and expertise, consistently delivering innovative solutions across the entire blockchain ecosystem.”

George Kikvadze, executive vice chairman of Bitfury, said the company’s successful private placement was a result of investors’ belief that the company is well positioned to lead the industry into another period of strong growth.

“With a half billion dollars in revenues, Bitfury is the leading blockchain B2B global technology infrastructure provider at the corporate and government level,” said Kikvadze. “This private placement will take our corporate governance to the next level, broaden our financial strategic options, and ideally position us for our next phase of growth as the market matures.”

The private placement came after it was reported that Bitfury was considering an initial public offering (IPO). Last month, Bloomberg reported that the company reached out to global investment banks as it explores making its trading debut in Amsterdam, London or Hong Kong as early as next year.