KnCMiner Announces $14 Million Series A Funding Round
KnCMiner has announced it has raised $14m as part of a Series A funding round.
The Sweden-based bitcoin mining company said in a statement that GP Bullhound, a technology-focused investment bank, acted as the advisor for the funding effort.
Creandum, a venture capital fund based in Stockholm that has invested in companies such as popular streaming music service Spotify and mobile payments firm iZettle, led the round.
KnCMiner is one of several mining companies to announce major funding deals in 2014. Earlier this year, BitFury announced that it raised $20m in new capital while others in the space, such as PeerNova, have also raised undisclosed amounts.
In a statement, co-founder Sam Cole said that the new funding will allow KnCMiner to build out its existing services such as its cloud mining offering and consumer-facing mobile tools.
"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."
In recent weeks the company has unveiled some of its future plans, which include data center operations in the Arctic Circle and a broader push to grow in what is becoming an increasingly competitive sector of the bitcoin economy.
The company that led the funding round has a broad portfolio of technology companies. Founded in 2003, Creandum's focus on the digital economy has led to stakes in payments and media firms.
Beyond Spotify and iZettle, Creandum has invested in companies like independent game studio PlayRaven and Vivino, which designed a mobile app that recognizes wine bottle labels. Last month, Creandum helped fund an online auto repair marketplace called Autobutler.
According to its website, the firm seeks to "help build market leaders within consumer, software and hardware."
Technology bank's role
GP Bullhound, the investment bank that managed the KnCMiner funding round, has a long history facilitating tech company mergers and acquisitions.
The bank has done business with a number of high-profile companies in the technology and digital sectors, including Spotify and mobile money service Monitise.
In a statement, Per Roman, managing partner for GP Bullhound, said that the deal reflects its belief that bitcoin holds significant promise for the world economy.
"We believe bitcoin will have a tremendous impact on a global scale. KnC is already the leading vendor of mining equipment and we are delighted to act as advisor as well as investor to this world-class management team."
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