New mining tycoon emerges, Genesis Digital Assets secures $431 million in funding
Both rounds of financing will be used to expand the Bitcoin mining business in the United States and Northern Europe.Author: Richard Lee
Yesterday, Bitcoin mining company Genesis Digital Assets announced the completion of a $431 million strategic financing round, led by Paradigm, with participation from NYDIG, FTX, Skybridge, and Kingsway Capital. Matt Huang, co-founder and managing partner of Paradigm, also announced his appointment to the board of Genesis Digital Assets.
The mining company completed this financing round less than two months after its previous one. At the end of July, UK private equity firm Kingsway Capital invested $125 million in the company.
Genesis Digital Assets was formerly known as the cloud computing provider Genesis Mining. Founded in 2013, Genesis Mining offered cloud mining services for multiple cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. In April of this year, the five founders of Genesis Mining collaborated with three former mining executives to establish Genesis Digital Assets, focusing on Bitcoin mining operations.
According to the announcement, Genesis Digital Assets currently operates over 20 industrial-scale mining sites and has 300,000 online miners. As of September 2021, its mining sites accounted for 2.4% of the total network hash rate. The company stated that it plans to increase its hash rate capacity to nearly 11.9 EH/s within the next 12 months, and it expects to exceed 1.4 GW of power generation by the end of 2023.
This year, Genesis Digital Assets has ordered mining machines from manufacturer Canaan Creative three times. In April, Genesis Digital Assets ordered a batch of A1246 Avalon miners for $93.6 million; in June and August, it ordered a total of 30,000 mining devices.
According to the Genesis Mining official website, the company's early mining sites were primarily established in Nordic regions such as Iceland and Norway. After completing two rounds of financing, Genesis Digital Assets will expand into the United States.
After China announced a comprehensive ban on cryptocurrency mining in May, mining companies in Europe and the United States have significantly expanded both financing and site layouts. Canadian mining company Hut 8 Mining purchased nearly 12,000 mining machines in July and announced the completion of a $173 million public offering of common stock on NASDAQ and the Toronto Stock Exchange in September. UK-listed mining company Argo Blockchain announced the purchase of land in Texas, USA, to build a renewable energy mining center, while also receiving approval from the U.S. Securities and Exchange Commission to list on NASDAQ.
