Supported by crypto capital such as Multicoin, energy unicorn Fuse Energy secures an additional $70 million in funding

European energy technology star project Fuse Energy recently announced the completion of a $70 million new funding round, with a post-investment valuation of up to $5 billion. What the crypto community should pay attention to is that the company had already received strategic investments from top investors in the crypto field as early as 2024, including Multicoin Capital and Solana co-founder Anatoly Yakovenko, and plans to launch a decentralized energy network, Project Zero. Leveraging a “from source to socket” vertical integration model, Fuse achieved $400 million in annual revenue and positive cash flow within three years of its founding. Its low-cost stable power solutions are becoming a leading answer to the high energy consumption challenges of AI and crypto mining.

$5 Billion Valuation: Why Capital Is Betting on Vertical Energy Integration

Against the global backdrop of AI and cryptocurrency mining driving double demand for electricity, a London-based energy startup, Fuse Energy, has made a remarkable capital leap. Recently, the company announced a $70 million financing led by Balderton Capital and Lowercarbon Capital, pushing its valuation past the $5 billion mark, making it Europe’s fastest-growing energy tech unicorn. This is not Fuse’s first time attracting discerning investors; as early as September 2024, it secured $12 million led by crypto venture giant Multicoin Capital, with participation from Solana co-founder Anatoly Yakovenko, demonstrating early crypto capital interest in physical energy infrastructure.

This funding surge is not an isolated event but a key piece of the 2025 European energy tech investment landscape. Throughout the year, from France’s Spark Cleantech to the Netherlands’ Return, the total disclosed funding in Europe’s energy tech sector approaches €390 million. Capital is pouring into software, hardware, and infrastructure, especially models like Fuse’s “vertical integration.” This model consolidates generation, trading, supply, and even end-user hardware under one company, aiming to fundamentally eliminate redundant costs in traditional energy supply chains. Investors’ continued backing effectively votes for a new business paradigm capable of systematically addressing electricity price volatility and grid fragility.

Fuse Energy Business Model Core Data

Cost Advantage: About 10% lower electricity prices compared to traditional suppliers

User Savings: Up to £200 (approximately €228) annual savings per UK household

Growth Scale: Annual Recurring Revenue (ARR) reaches $400 million, an 8x increase year-over-year

Service Scope: Power supply to over 200,000 households in the UK

Cash Flow Status: Achieved positive cash flow before its fourth year

“From Source to Socket”: How Fuse Disrupts Industry with Vertical Integration

The core of Fuse Energy’s disruptive energy model lies in its thorough full-stack vertical integration strategy. Simply put, it maintains internal closed-loop control over all aspects—from renewable energy plant construction, generation, trading, retail supply, installation services, to end-user storage hardware. This contrasts sharply with traditional competitors like Octopus Energy, which rely on third-party generation. The inspiration for this model directly stems from the experiences of co-founders Alan Chang and Charles Orr at the star fintech company Revolut, where they pursued extreme efficiency and vertical control—applying the “Revolut methodology” successfully to the old and complex energy industry.

By internalizing external transactions and outsourcing, Fuse greatly reduces the friction costs and profit layers inherent in traditional models. According to company disclosures, this approach enables it to offer stable power about 10% below market average, genuinely easing household energy bills. More profoundly, this integrated control grants the company remarkable agility and freedom to innovate. It can independently and rapidly develop and launch solutions like “The Energy Network,” a grid balancing system that incentivizes users to consume during off-peak hours, enhancing grid stability and resilience while creating additional savings for participants. These initiatives point toward a clear vision: leveraging technology-driven vertical integration to make clean energy cheaper, more abundant, and smarter.

From Crypto Capital to Energy Networks: Fuse’s Deep Connection with Web3

Fuse Energy’s story is particularly attractive to the crypto industry, not just because it received investment from Multicoin Capital. More fundamentally, its business blueprint aligns with blockchain and Web3 philosophies. When Multicoin led the funding in 2024, Fuse explicitly stated plans to use the capital to develop a decentralized physical infrastructure network for renewable energy—Project Zero. This hints that Fuse’s long-term strategy may involve utilizing blockchain technology to tokenized or distributedly manage energy assets’ ownership, operation, and trading, aligning with the emerging “DePIN” (Decentralized Physical Infrastructure Networks) track in the energy sector.

For crypto, especially Bitcoin mining and large AI compute centers, stable and low-cost power is vital for survival and growth. Fuse’s vertical integration offers a tangible hedge against electricity price fluctuations. Its “Energy Network,” which employs a dynamic demand response based on pricing, could theoretically integrate seamlessly with crypto mining operations that can interrupt loads. Miners could reduce consumption during peak prices to earn economic incentives, lowering their costs while providing valuable grid balancing services—achieving a win-win for both economy and ecology.

Looking ahead, Fuse’s success points to an important trend for the crypto industry: the most disruptive investment opportunities may lie at the intersection of blockchain technology and critical physical infrastructure like energy, communications, and computing. Having received early support from crypto capital and potentially evolving its network architecture toward Web3, Fuse sets a model for other projects aiming to solve real-world efficiency issues. We may be witnessing the dawn of a new era, where decentralized networks combined with efficient physical operators will redefine how energy is produced, distributed, and consumed—deeply embodying the spirit of crypto and real economy integration.

Future Outlook: Global Expansion and New Energy Infrastructure for the Crypto World

Armed with $70 million in new funding, Fuse Energy’s expansion path is already clear. The company plans to rapidly move from the UK market into Ireland, Spain, and the US. These markets face common challenges of energy transition, high electricity prices, and grid upgrades, providing broad opportunities for Fuse’s proven model. Clay Dumas of Lowercarbon Capital notes that their continued heavy investment in Fuse is because it demonstrates that a vertically integrated energy company can be more profitable, expand faster, and offer better products than traditional giants.

For the crypto ecosystem, Fuse’s global expansion means the potential proliferation of high-quality, low-cost power supply networks. With the rollout of hardware like its micro solar kits, distributed energy resources will further spread, possibly enabling community or campus microgrids that serve as ideal upstream energy partners for distributed compute nodes such as small data centers or mining farms. Daniel Waterhouse of Balderton Capital believes that, amid the accelerating development of AI and surging energy demand, Europe needs sustainable, scalable, and resilient power—precisely what Fuse is reconstructing from first principles.

In summary, Fuse Energy has grown from a crypto-capital-backed startup to a $5 billion valuation vertically integrated energy giant, outlining a clear future of energy and technology integration. It is not only a disruptor in the energy industry but may also become an essential “new energy infrastructure” provider for the high-energy-consuming sectors of crypto and AI. As its Project Zero decentralized network advances, we can expect blockchain technology to play a more critical role in optimizing global energy resource allocation—an excellent testament to the deep integration of crypto spirit and real economy.