In an announcement Swedish maker of Bitcoin miners, KnCMiner says that it has made a $14 million Series A which it is going to use to build out new mining chips along with hosted mining services. The company says that the funding will enable KnCMiner to expand its mining operations and ability to offer services to consumers in relation to the Bitcoin environment.
Founded by Sam Cole and Andreas Kenner, KnCMiner raised the money with GP Bullhound advising which was led by Creandum. So far, the company has been making heavy-duty ASIC systems that literally move the Bitcoin markets a few seconds after they are deployed. However, it is not working on chips.
In the press release Sam Cole was heard saying that his company is improving its 20nm ASIC capability, and for R&D on the next generation ASIC chip which will come on-stream next year and will represent a step-change in processing capacity. KnCMiner aims to change the Bitcoin industry by offering high performance mining products.
As the company aims to enhance Bitcoin mining experience it is combining it with services that together make it extremely easy and cost efficient to mine Bitcoins and the latest funding event was aimed to fund the same. The foundation of the company is to offer services around these products which make it as easy and efficient as possible for everyone to join in.
Bitcoin Has Huge Prospects for Investors
So far, KnCMiner hasn’t been actively looking for funding as most of its miners sell out immediately during pre-order periods. However, as it is looking to expand operations in hosted mining as well as create new chips faster, it has started looking for funds that can help it in expanding its operations.
Moreover, as KnCMiner is still bullish on Bitcoin and looking for about $70 million in Series B funding in the next year, the new investors have an attractive opportunity. According to Sam Cole his organization believes that Bitcoin’s price will appreciate steadily and significantly over time due to the interaction of a fixed rate of ‘money supply’ growth.
The company also believes that as there is a significant growth in transaction volumes, it expects that there will be rise in demand of the digital currency. According to it the excess demand for Bitcoins will lead to currency appreciation and the decision to invest further in the ecosystem is going to pay better returns for the venture capitalists.
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