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 funding will help the Texas-based startup expand its operations in the U.S. and beyond, according to a pitch deck obtained by The Block. Giga Energy has previously raised $3.6 million in total funding, per the deck.
A source with direct knowledge of the matter confirmed that Giga Energy is raising $10 million in Series A funding and has previously raised $3.6 million in two rounds — $1.1 million pre-seed in August 2021 and $2.5 million seed in March 2022. Investors in those rounds included Magic Internet Money and Ten31.
Giga Energy's pre-money valuation at the time of the seed round was $30 million, the source added.
Stranded flared gas
Giga Energy was founded in 2019 by Matt Lohstroh and his friend and high school classmate Brent Whitehead. The duo, both 20 at the time, hit upon surplus natural gas as a power source to mine bitcoin. Later they ventured into the infrastructure space, manufacturing their own natural gas generators. As for its business model, Giga's revenue comes from mining bitcoin as well as selling electricity, generators and rack space.
The startup made $4.6 million in total revenue last year, according to the deck. That's a big jump from its 2021 revenue of $800,000 when it was only mining bitcoin. Its revenue is growing at 50% quarter-on-quarter, according to the deck.
Out of its targeted $10 million raise, Giga will use nearly $6 million for manufacturing generators and the rest for other expenses, including payroll, research and development and data centers, per the deck.
With expected fresh capital in hand, Giga Energy plans expansion in the U.S. 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 has operations in Texas and Louisiana.
Giga Energy declined to comment on this story when contacted.
The bitcoin mining sector is seeing an increased amount of funding lately. Last month, crypto infrastructure company Blockstream raised $125 million in convertible note and secured loan financing to expand its bitcoin mining hosting services. Earlier this week, crypto miner Pow.re secured a $9.2 million Series A round and a separate $18 million strategic investment, while Bitcoin miner TeraWulf also raised $32 million from a public equity offering.
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