Genesis Digital Assets mining company raises $431m

Genesis Digital Assets mining company raises $431m

US mining company Genesis Digital Assets has announced it has raised a strategic investment of $431m.

According to a press release, the round was the largest in the industry. It was led by Paradigm with participation from NYDIG, Stoneridge, FTX, Ribbit, Electric Capital, Skybridge and Kingsway Capital. The latter invested $125m in the firm in July 2021.

As part of the round, Paradigm co-founder and managing partner Matt Huang joined the board of Genesis Digital Assets.

We will use the capital raised to expand our bitcoin mining operations in locations where clean energy is readily available, said co-founder and CEO of the mining company Marco Strang.

As of September, the installed capacity of Genesis Digital Assets' data centres exceeded 170MW. The hash rate generated was more than 3.3 EH/s - about 2.4% of the first cryptocurrency's aggregate network computing capacity.

The company expects the figure to increase by 8.6 EH/s over the next 12 months. Genesis Digital Assets is planned to reach 1.4 GW of capacity by the end of 2023.

Recall that in April 2021, the firm entered into a strategic partnership with Chinese mining equipment maker Canaan, in which it agreed to purchase $94m worth of bitcoin mining devices.

In June, the companies expanded the partnership and signed a contract to supply 10,000 miners.

In August, Genesis Digital Assets ordered 20,000 pieces of equipment from Canaan and was given the option to buy 180,000 more miners.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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