Genesis Digital Assets raises $431M to expand mining operations in Nordics and the US
Genesis Digital Assets, a major Bitcoin (BTC) mining firm, has announced it has secured funding of $431 million for its plans of expansion of industrial-scale mining operations in the Nordics and the United States.
The funding round led by Paradigm has been one of the biggest crypto investment companies that have a record of backing the largest players like FTX and Coinbase. The firm announced on September 21 that Matt Huang, the co-founder of Paradigm, has also become a part of Genesis Digital’s board of directors.
Other investors in the fund include the $11 billion asset manager Stone Ridge along with its Bitcoin subsidiary NYDIG. Several venture capitalists and investment management firms, in addition, are Electric Capital, Ribbit, Kingsway Capital, Skybridge and FTX crypto exchange. In July 2021, Kingsway had led a $125 million equity funding round for Genesis.
CEO and co-founder of Genesis Digital, Marco Streng, has noted that the new funding would help the firm to expand operations, having a global reach of 1.4 gigawatts in its mining capacity by 2023. He also added that the capital raised from the fresh round of funding would be used in expanding their Bitcoin mining operations in several other locations “where clean energy is easily accessible.”
One of the biggest Bitcoin miners in the United States, Genesis Digital has worked extensively to increase its mining power recently, therefore in a bid to accumulate more hardware for crypto mining.
In August 2021, Genesis had purchased 20,000 BTC new mining devices from Chinese mining leader Canaan, and signed an agreement for buying up to 180,000 additional miners in the future.
The firm’s mining capacity has been rising steadily from around 140 megawatts in July 2021 to over 170 megawatts now in September.
The company’s website reports that the data centre had a capacity of over 143 megawatts in July 2021 (total hash rate of 2.6 exahashes (EH/s). This is much more than 2.6 per cent of the global Bitcoin mining hash rate. The firm, further expects to add another 8.6 EH/s in the coming 12 months.