Giga Energy, a bitcoin mining infrastructure startup focused on utilizing wasted natural gas as a power source, is raising $10 million in Series A funding.
The money will enable the Texas-based startup to increase its operations within the country. and beyond, according to a pitch deck obtained by The deck states that Giga Energy has previously raised $3.6 million in total funding.
According to a source with firsthand knowledge of the situation, Giga Energy is raising $10 million in Series A funding in addition to the $3.6 million it raised in the previous two rounds of funding ($1.1 million pre-seed in August 2021 and $2.5 million seed in March 2022). Those rounds featured Magic Internet Money and Ten31 as investors.
The source also stated that Giga Energy’s pre-money valuation at the time of the seed round was $30 million.
Stranded Flared Gas
Matt Lohstroh and Brent Whitehead, a friend and fellow graduate of their high school, established Giga Energy in 2019. The two, who were both 20 at the time, discovered excess natural gas as a fuel source for bitcoin mining. In the future, they made their own natural gas generators and entered the infrastructure industry. As for its business model, Giga’s revenue comes from mining bitcoin as well as selling electricity, generators, and rack space.
The deck claims that the startup’s total revenue for the previous year was $4.6 million. That represents a significant increase from its revenue of $800,000 in 2021 when it was solely engaged in bitcoin mining. According to the deck, its revenue is increasing by 50% on a quarterly basis.
According to the deck, Giga will use nearly $6 million of the $10 million it aims to raise for the production of generators and the remaining $7 million for payroll, R&D, and data centers.
Giga Energy intends to expand in the United States with the anticipated new funding. states of Mississippi, Utah, Ohio, and North Dakota, as well as across the world, including Argentina, Ecuador, Bahrain, Egypt, and the U.A.E. Giga Energy currently conducts business in Texas and Louisiana.
After being contacted, Giga Energy declined to comment on this story.
Recently, there has been more investment in the bitcoin mining industry. In order to increase the scope of its bitcoin mining hosting services, Blockstream, a provider of crypto infrastructure, raised $125 million last month through the issuance of convertible notes and secured loans. Earlier this week, Bitcoin miner TeraWulf raised $32 million from a public equity offering, while cryptocurrency miner Pow.re received a $9.2 million Series A round and a separate $18 million strategic investment.