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One of the largest industrial-scale Bitcoin mining operators in the world, Genesis Digital Assets, made the announcement on July 28.
The firm stated that it has secured a $125 million round of equity funding to support “aggressive expansion plans.” The funding round comes from the U.K.-based private equity fund Kingsway Capital. The fund is focused on frontier emerging markets with over $2 billion in assets under management.
Genesis Digital Assets plans to use the funding capital to purchase equipment and build new data centers in the United States and Nordic region.
Powering 1GW of BTC Mining
The firm, founded in 2013, has built more than 20 industrial-scale mining farms, brought over 300,000 miners online, and mined over $1 billion in Bitcoin, the announcement added.
Genesis Digital Assets data center capacity currently exceeds 150 megawatts, translating into a total hash rate of more than 2.6 Exahashes (EH/s). This is equivalent to around 2.25% of the global BTC mining hash rate at current levels.
The company has plans to increase this by adding another 5.5 EH/s within the next 12 months and increasing its capacity to 1,000 megawatts by the end of 2023.
Executive Chairman and co-founder of Genesis Digital Assets, Abdumalik Mirakhmedov, stated their mission is to “provide the infrastructure that will power the open-source monetary system revolution.” Manuel Stotz, CEO of Kingsway Capital, stated that Bitcoin is key to the financial inclusion of the global poor and unbanked, adding:
“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. There’s no one else in the bitcoin mining industry that has this level of experience and we’re incredibly excited to support their next wave of growth and long-term vision.”
Since the crackdown in the Far East, Bitcoin mining operations have started to become more environmentally friendly.
Bitcoin Price and Hash Rate Recovery
Hash rates have been steadily recovering since the fallout from China’s massive crackdown sent them tumbling 65% to 68 EH/s on June 28. The metric has currently recovered 70% to current levels of 115.5 EH/s according to Bitinfocharts although it is still just as far away from its peak.
Bitcoin prices have also been in recovery mode this week with a gain of 23.5% over the past 7 days. At the time of writing, BTC was trading flat on the day at $39,940 according to CoinGecko. It topped $40K twice over the past 24 hours and is holding just below it at the time of press.