This was the second round of financing carried out by the firm in 2021.
Genesis Digital Assets The mining firm expects to reach 1.4 gigawatts of power for the year
Genesis Digital Assets raised enough money to buy some 226,000 Antminer S19 Pro miners after a successful round of financing, if they wanted to. This considering the price of the hardware mentioned on the official website of Bitmain, its manufacturer; since, with resellers, its cost can be up to five times higher.
The amount of money raised by Genesis Digital Assets is the highest registered in a financing round by a company dedicated to bitcoin mining. The figure obtained from participating investors reached a total of USD 431 million.
Paradigm, a firm characterized by its investments in the cryptocurrency ecosystem, led the round accompanied by NDYG, Stoneridge, FTX, Ribbit, Electric Capital, Skybridge and Kingsway Capital. The latter led the previous Genesis Digital Assets financing round, held in July of this year.
As tempting as the idea of buying more than 200,000 Antminer S19 Pro miners and enjoying all their mining power may be for many, Genesis Digital Assets already has other plans for the money raised. According to Marco Streng, CEO of the firm, the main objective of the capital received will be to expand its operations to other locations.
As we work towards our goal of reaching 1.4 gigawatts online by 2023, the capital raised in this round will be used to expand our Bitcoin mining operations in locations where there is access to clean energy.
Marco Streng, CEO at Genesis Digital Assets.
Genesis Digital Assets seems to have no intention of buying Bitmain’s S19 miners
In the event that Genesis Digital Assets management decided to add more mining hardware to their farms, the chances of them investing in Bitmain equipment is low. This is because Canaan Creative, another manufacturer of devices for mining bitcoins, would probably be the first option they choose.
The relationship between the firm and Canaan Creative is currently very good. In fact, at the end of August this year, it became known that Genesis Digital Assets had placed an order for 20,000 miners from this manufacturer. Although it was not specified which model they have negotiated. In addition to this, Canaan offered the mining firm the option to buy 180,000 more units.
The growth of mining activity in Bitcoin is an optimistic sign for this niche. At the beginning of August of this year, we reported in CryptoNews that Marathon, another benchmark in the cryptocurrency mining industry, had just bought 30,000 Antminer S19j Pro miners from Bitmain. This after having announced the construction of its mining “mega-farm” in Texas, where it would house 73,000 ASIC equipment.