Kenya-based Bitcoin mining company raises $2 million in seed investment led by Jack Dorsey-owned firm – Mining Bitcoin News
Gridless, a bitcoin mining company operating out of Kenya, recently raised $2 million in seed investment from Block, a digital payments company owned by Twitter founder Jack Dorsey, and Stillmark. The Bitcoin mining company reportedly plans to use the capital raised to fund its expansion into other African countries.
Using revenue generated from BTC sales to subsidize power costs
A Jack Dorsey-owned digital payments firm, Block, and Stillmark, a bitcoin-focused venture firm, are reported to have led a $2 million seed investment in African crypto mining company Gridless. According to a report, Gridless, which currently operates in Kenya’s rural areas, plans to fund its expansion into other African countries with the capital raised.
As reported by Bitcoin.com News in October, Gridless utilizes excess electricity generated by mini-hydroelectric plants to mine bitcoin. The bitcoin is then sold and the revenue generated is used to subsidize the electricity costs of users in Kenya’s rural areas. At the time, Gridless said it used electricity from power plants that generated less than 100 kilowatts (KW).
Meanwhile, a report from CNBC says that the crypto mining company’s founders, Erik Hersman, Philip Walton and Janet Maingi, have spent the past few months launching pilot mining projects. In January 2023, Gridless plans to launch a 50KW hydro mine in Malawi and a 30KW solar-powered site in West Africa.
Power and connection
Commenting on Gridless’ reported dual mission of bringing power and connectivity to Africa’s rural areas, Walton, who is also the mining company’s chief financial officer, said:
“We had spent years building infrastructure for Internet connectivity in rural and urban Africa and realized that you cannot have a 21st century economy without both power and connectivity together. When we looked at the next problem to solve, we realized we that bitcoin mining solved a major problem for renewable mini-grid developers by being their industrial off-taker for stranded power, wherever they were located, making them more sustainable and increasing electrification across Africa.”
Demonstrating the effectiveness of Gridless’ business model, the CNBC report revealed that at one of the pilot plants, a mini-hydroelectric plant had effectively reduced the price of electricity from 35 cents to 25 cents per kilowatt hour.
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