Sweden-based bitcoin mining firm KnCMiner has secured USD 14 million Series A funding from venture capital fund Creandum, who had recently invested in mobile payments company iZettle and streaming music service Spotify.
In a statement, co-founder Sam Cole said that the funding will enable KnCMiner to expand its mining operations and ability to offer services to consumers in relation to the Bitcoin environment. The raised amount will also help to accelerate KnCMiner’s lead in cutting-edge nanotechnology R&D for its next-generation ASIC hardware as well as moving forward in developing new pool software along with other new financial products related to cryptocurrency mining, transacting and asset management.
Cole also added that:
“We are delighted to welcome our new investors and thrilled to have the opportunity to extend our lead within the bitcoin ecosystem. In tandem with our considerable investments in IP, this round of funding will further cement our lead in hardware design and deployment of cryptocurrency services.”
Since its inception in April 2013, the company claims to sold over USD 70 million in mining hardware and have generated more than USD 40 million of revenue. After taking a step into the software development space, it had also released the mobile Bitcoin wallet, KnCWallet and have developed a new proprietary cloud mining management/front-end system, from scratch.
The company is also looking for about USD 70 million in Series B funding in the coming year to get assured on Bitcoin.
“KnC believe that Bitcoin’s price will appreciate steadily and significantly over time due to the interaction of a fixed rate of ‘money supply’ growth and significantly faster growth in transaction volumes and therefore rising ‘money demand.’ Excess demand for Bitcoins will lead to currency appreciation, i.e. a rising U.S. dollar-value of Bitcoins, over time,” said Cole.
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