Arkon Energy, the data center startup that uses renewable electricity to mine bitcoin, raised $28 million, led by quantitative investment manager and digital assets market maker, Blue Sky Capital.

The financing was a combination of senior debt and equity capital and included some returning investors such as Kestrel 0x1 as well as new ones, including Shima Capital, the company said in a statement.The startup has also bought Hydrokraft AS, a renewable energy-based data center in Norway, without disclosing the terms of the deal.

Hydrokraft's data centers are powered completely by hydro electricity and has operating capacity of 30 megawatt (MW) which can be expanded to 60MW, Arkon said in the statement.The startup plans to immediately begin work to build out incremental infrastructure to utilize the facility’s full capacity.

However, in recent months, mining companies that has access to low cost energy and more innovative business model, are getting financed by investors.Arkon, founded in 2019, headed by CEO Josh Payne, who is also co-founder and chief operating officer of Battery Future Acquisition Corp. (BFAC), a NYSE-listed special purpose acquisition vehicle (SPAC). As part of the new funding round, partners from Blue Sky, Kestrel 0x1, and Barkers Point Capital Advisors will be joining the startup's board. The company previously raised $2.6 million in pre-seed funding.