Bitcoin Mining Giant Generates $431 Million in Latest Investment Round
Leading US Bitcoin miner, Genesis Digital had spoken of bolstering its mining base back last month. In line with this plan, the mining company has reportedly generated $431 million in its latest investment round, led by crypto investment giant Paradigm. This comes on the heels of a $125 million investment in July that had giant VC Kingsway Capital in the leading position.
The majority of Genesis Digital’s mining base is in the US and the Nordic region, and the Bitcoin mining behemoth is looking at consolidating its activities in both regions, especially in areas where renewable power is available. With contributions from Paradigm, one of the top industry players affiliated to two leading crypto platforms, Coinbase and FTX, this investment round will help Genesis Digital achieve its aim. Interestingly, Paradigm’s co-founder Matt Huang is the latest addition to the mining giant’s board of directors, according to an announcement on Monday.
Crypto Derivatives platform FTX Joins Genesis Digital’s Investment Round
The investment round witnessed contributions from other investors such as Stone Ridge and its Bitcoin arm, NYDIG alongside numerous VC companies and crypto trading platform FTX.
Speaking on the latest investment round, Genesis Digital’s co-founder and CEO, Marco Streng revealed that the raised funds will assist the mining outfit to broaden the scope of its activities. This aligns with its aim to acquire a mining capacity of 1.4 gigawatts by 2023. Genesis Digital is also factoring in renewable power in its expansion plans given the concerns raised globally on the environmental implications of carbon mining. This had been the basis of China’s controversial mining ban in May.
Genesis Digital made a major move on expansion after acquiring 20,000 Bitcoin mining hardware from Chinese mining behemoth, Canaan, which is part of an-over-150,000-mining-rigs deal it signed with the latter in August.
Genesis Digital Pledges to Bolster Mining Hash Rate
In the meantime, Genesis Digital mining power has been on the rise since July of this year. At the time, the company’s mining hash rate was at 2.6 EH/s before leaping to 3.3 EH/s or 170 megawatts this month. Genesis Digital plans to raise its data center capacity from a mere 2.6 EH/s to 11.6 EH/s by next year. Its current hash rate accounts for over 2.6% of the total Bitcoin mining hash rate in the world.
With the recent venture and expansion on crypto mining coupled with the settling of migrating Chinese miners, the global mining hash rate has recovered by no small measure, after plunging to the depths in the wake of China’s mining ban and hostile regulations for mining in other regions. However, miners are mostly turning toward renewable energy sources to power their mining rigs.
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