Genesis Digital Assets is one of the largest industrial-scale bitcoin mining operators in the world. It has recently made an announcement on July 28. The company has raised millions of dollars for its plan of aggressive expansion in the middle of the China crackdown. Genesis Digital Assets stated that it has secured a $125 million round of equity funding. This is for supporting its “aggressive expansion plans.” This round was led by the U.K.-based private equity fund Kingsway Capital. This huge amount of funds will be used to buy mining hardware and launch new data centers in the U.S. and the Nordic region. According to the agreement, Manuel Stotz, CEO of Kingsway Capital, will join Genesis Digital Asset’s board of directors. He talked about Genesis’ long history in the mining industry.
Stotz said, “The GDA team has been building highly profitable large-scale Bitcoin mining farms for nearly eight years and the industry has only been around for twelve. Bitcoin is going to be the most important technology for financial inclusion of the global poor and unbanked and mining provides security to make this possible.”
Genesis Digital Assets Powering BTC Mining
Genesis Digital Assets’ current overall hash rate is 2.6 exahash (EH/s) per second. This exceeds 2.6% of the global hash rate. By the end of 2023, the company plans to add another 5.5 units of capacity. The focus will be on the data center throughput of more than one gigawatt. Genesis estimates that since its launch in 2013, more than $1 billion worth of Bitcoin has been mined. However, Genesis is not the only company seeking growth in China’s difficult mining business. The US mining company Stronghold also applied for a $100 million initial public offering (IPO) on July 27. The company wants to increase its operating hash rate by approximately 75 %. It will increase from 3,000 petahashes per second (PH/s) to 5,300.
Apart from Genesis Digital Assets, on July 28, the Chinese company BIT Mining disclosed that it has signed an agreement to purchase 2,500 new mining machines. These mining machines are worth 6.6 million U.S. dollars and the company will deploy them in Kazakhstan. The hash rate is expected to increase by 165 PH/s. Although industrial mining companies are actively taking action to expand their operations outside of China, reports show that in the past 12 months, the hash rate has become more and more dispersed, and even smaller companies have increased their share of global hash power. Furthermore, the reports also show that China’s hash rate has been continuously declining for more than a year and now it has led up to the Chinese crackdown. The country’s hash rate has fallen from 75.5% of the global total in September 2019 to 46% in April 2021.