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Cryptocurrency mining firm Genesis Digital Assets has raised $125 million to expand its operations in the US and the Nordic region. The raise was led by UK-based private equity fund Kingsway Capital, which reportedly has over $2billion in assets under management (AUM).
Genesis Digital Assets Secure $125M Funding for Western Expansion
The ongoing transition of crypto miners from China has created a windfall of opportunities for mining companies in the west. Unsurprisingly, many want to capitalize on this new “gold rush” by stretching their capabilities and building more centers to generate digital assets. Genesis Digital Assets seems to be following the same trend with its latest funding round.
On July 28, the company announced that it has secured $125 million from investors to purchase additional equipment and build new data centers in the US and Nordic region. As part of the deal, Kingsway Captial CEO Manuel Stotz will join GDA’s board of directors.
“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,” Stotz noted while addressing Kingsway’s latest investment. “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.”
Founded in 2013, Genesis currently represents more than 2.6% of the world’s Bitcoin mining hash rate. The firm plans to supplement this capacity with another 5.5 Exahashes (EH/s) in the next 12 months, expecting to surpass a data center capacity of one gigawatt by the end of 2023.
To date, the company has built more than 20 industrial-scale facilities and secured more than 300,000 miners online, while mining over $1 billion worth of Bitcoin.
China’s Mining Crackdown Triggers Expansion of Crypto Businesses
Many crypto mining firms have pushed for aggressive expansion in the aftermath of China’s crackdown on miners. Companies are looking into various strategies that lead to accelerated growth including the acquisition of additional mining rigs, construction of new data centers, private fundraising, and initial public offering (IPO).
Predictably, the global mining landscape is becoming increasingly diverse and even small-scale players have found a share in the burgeoning market. According to a Blockchain.com report, Bitcoin mining has turned into a distributed business in the last 12 months, with many small anonymous firms raking in profits. However, there are also many miners in the west, who have become more transparent and delivering quarterly disclosures.
In the meantime, China’s hash rate is no longer the dominant force it used to be in the crypto community. The country’s BTC mining power has declined from more than 75% in 2019 to nearly 45% in April 2021. Altogether, the mining industry is going through some interesting changes which will have a broader impact on the crypto sector in the future.