Genesis Digital Assets Secures 20,000 ASIC Miners in Expansion Play
North America-based Bitcoin miner Genesis Digital Assets is ramping up its mining capacity.
Earlier this week, the company announced the successful purchase of 20,000 mining rigs from Canaan Creative as it looks to continue scaling up its mining activities.
Additional 180k ASIC Miners Up For Grabs
In its official statement, Genesis explained that the purchase is just a step in its current expansion phase. Besides these rigs, Canaan has also allowed the company to purchase an additional 180,000 mining rigs.
Both parties didn’t reveal the specific make of the rigs or how much they cost in total.
Meanwhile, this recent acquisition continues a long-standing relationship between Genesis and Canaan, with both companies entering into a partnership in Q1 2021 after Genesis purchased Avalon miners for $93 million. Most recently, Genesis bought 10,000 Bitcoin miners from Canaan in June.
Genesis co-founder and executive chairman Abdumalik Mirakhmedov explained that these rigs will be deployed primarily in North America as well as its outlets in several Nordic countries.
“Genesis remains committed to its goal of hitting a power generation rate of 1.4 gigawatts at the end of 2023 The company’s current levels stand at just over 143 megawatts – or a total of 2.6 exahashes (EH/s),” he added.
The purchase is coming after Genesis closed a $125 million equity funding round, led by British investment firm Kingsway Capital. At the time, the company had said that it would direct the funds towards its expansion efforts in the Nordic region and the United States.
Competition Heats Up
Genesis is just one of the mining companies that have ramped up expansion efforts in the wake of China’s ban on all crypto mining activities. But, it is currently facing stern competition.
Last month, the top US mining operation, Riot Blockchain, published its quarterly results, showing record revenues for Q2 2021. The results showed that Riot netted an impressive $31.5 million from mining-related activities throughout the quarter – up 1,540% year-on-year (YoY).
Net incomes also hit record levels for Riot, with $19.3 million compared to the $10.6 million loss suffered in Q2 2020.
The company is expanding aggressively as well, with the purchase of 42,000 s19k Antminers from Bitmain. Riot’s chief operations officer explained that the deal, valued at $138.5 million will position Riot as the foremost mining company in the United States.
Riot also plans to get a minimum of 3,500 s19j Antminers monthly from November 2021 to October 2022, and it recently purchased Whinstone U.S. Inc, a Texas-based data facility, for a record value of $650 million.