Digital Power Optimization Inc, a major energy services provider, announced on Wednesday that it has raised $2.5 million in a Series A funding round led by NYDIG bitcoin company. Other investors such as Wakestream Ventures, NBDR Ventures, Luxor Technologies and private individuals within the renewable energy, crypto and bitcoin mining sectors also participated in the funding.
Digital Power stated that it wants to use the funding to expand its business operations to several sites around the U.S. and Europe. Additionally, the firm will utilize the funding to increase its headcount, boost marketing and business development efforts, as well as deploy additional mining computers at new locations.
Established in February 2020 and headquartered in New York, Digital Power Optimization was designed to secure under-utilized renewable power generation assets. The company provides solutions to solve problems associated with the imbalances in the electricity system. The firm uses crypto mining as a tool to help power plants and electrical grid operators manage load imbalances and the associated mispricings. The firm disclosed that the fresh funding will enable it to grow its team of experts and bring its main product ‘cryptocurrency mining as a service’ (CMaaS) to the global power and utility industries.
Andrew Webber, the CEO of Digital Power Optimization, talked about the fundraise and their partnership with NYDIG: "We are excited about this new round of funding led by NYDIG and the quality partnerships that come with it. NYDIG has an exceptional track record and reputation and has the experience to help DPO's clients with challenges like secure custody, production hedging, transaction execution, regulatory guidance, insurance and equipment financing in an institutional fashion. In the end, this partnership makes it easier for DPO to do its job of bringing the flexibility and advantages of bitcoin mining directly to the energy sector as a much-needed aid in the management of power grids and the clean energy transition."
Bitcoin Mining’s Potential Role in a Greener Energy System
Cryptocurrency mining mostly makes headlines because of the huge quantity of electricity the process consumes. However, the mining activity has strong potential in both demand response and opportunities to support the energy transition.
The high impact of electricity prices on miners’ operational expenses has already seen crypto mines move to North America for access to cheap hydropower and cheap wind and natural gas. This has led to much discussion of the potential value of Bitcoin mining to enable the development of new renewable generation.
In short, cryptocurrency mining is converging with the energy sector at a rapid rate, producing innovation that decarbonizes Bitcoin and benefits renewable grids. This is where Digital Power Optimization Inc comes to play in terms of helping power producers, energy firms and various users to make more efficient use of their energy and their generation assets.
