Genesis Digital Assets buys 20K Bitcoin miners after $125M raise

The United States-based Bitcoin (BTC) mining company Genesis Digital Assets continues growing its cryptocurrency mining power with a fresh deal with Chinese crypto mining giant Canaan.

Genesis has secured a purchase order for purchasing 20,000 Bitcoin miners from Canaan, the mining machine manufacturer announced on Aug. 31.

In conjunction with the new purchase, Canaan has also granted Genesis an opportunity to buy up to 180,000 additional BTC mining machines, Canaan said.

Genesis co-founder and executive chairman Abdumalik Mirakhmedov noted that the new batch of Bitcoin miners will help the firm further expand its mining operations in North America and the Nordics. He added that Genesis is focused on scaling up in these regions as the company is focused on energy coming from renewable sources.

“These new machines will dramatically increase our capacity as we work towards our goal to increase our capacity to 1.4 gigawatts by the end of 2023,” Mirakhmedov said. According to the company’s website, Genesis’ data center capacity was at over 143 megawatts as of July 2021, or a total hashrate of 2.6 exahashes (EH/s), which is more than 2.6% of the global Bitcoin mining hashrate.

Canaan CEO Nangeng Zhang pointed out that the company has secured several deals with Genesis after entering a long-term partnership in Q1 2021, starting with a $93 million Avalon miner deal. Genesis and Canaan have since continued advancing the strategic partnership, signing a 10,000 Bitcoin miner sale in July.

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“This order with an option of future large purchases further solidifies our collaborations and reflects both parties’ confidence in the prospect of the cryptocurrency mining industry,” Zhang added.

The latest Bitcoin miner purchase comes shortly after Genesis closed a $125 million equity funding round in late July. Led by United Kingdom-based Kingsway Capital, the round aimed at generating funds for purchasing more mining hardware and launching new data centers in the United States and Nordic region.