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KnCMiner logo.

KnCMiner logo.

Stockholm-based bitcoin mining hardware maker KnCMiner announced the results of a new funding round today, adding $14 million to the company’s expansion plans. The Series A round cash will be invested into new hardware designs and software development, as well as funding the company’s ongoing growth in the cloud-based mining sector. The fundraising round was was led venture capital fund Creandum, with additional major investment coming from mobile payments company iZettle.

In the press release announcing the fundraising round’s results, KnCMiner co-founder Sam Cole said: “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.”

It’s not hard to see KnCMiner’s appeal to VC firms. The company, which was founded in early 2013, claims to have sold over $70 million in mining hardware and generated $40 million in revenue. The funding deal comes on the heels of KnCMiner’s recent announcement of a new 7 Petahash per second cloud-based mining facility in Sweden. Stockholm-based VC fund Creandum is no stranger to cutting-edge tech investments, giving companies like Spotify a significant early boost, but this appears to be the firm’s first major investment in the cryptocurrency industry. The deal was managed by technology investment bank GP Bullhound.

The $14 million KnCMiner deal pushes this year’s total venture capital investment in bitcoin companies to around $185 million, and total VC investment in bitcoin to date to around $280 million.

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