Genesis Launches Mining Partnership, Buys US$93.6 mln of Canaan’s AvalonMiner
After five founders partnered to launch Genesis Digital Assets as a brand that seeks to build and manage industrial-scale Bitcoin mining operations, the company placed orders worth US$93.63 mln with the second largest designer and manufacturer of Bitcoin mining machines globally, Canaan, to supply its A1246 AvalonMiner mining machines for Q1 and Q2 2021.
Marco Streng and Marco Krohn from Genesis Mining and three former mining industry executives, Abdumalik Mirakhmedov, Andrey Kim, and Rashit Makhat, said the orders will enable their industrial-scale Bitcoin mining firm to increase its current Bitcoin computing capacity by over 83%, from 140MW to 247MW, across over 20 industrial-scale mining facilities.
First launched in Q3 2020, the A1246 is a SHA256 mining rig that produces a stable hashrate of 90TH/s with 38J/TH of power. As of April 2021, Genesis Digital Assets data center capacity reached over 140MW translating into a total hashrate exceeding 2.0 Exahashes (EH/s) or over 1.2% of the global Bitcoin mining hashrate, the firm states in a public release. It adds that another 5.5 EH/s will be online in the next 12 months and they expect to reach a capacity of 500MW by 2022 and over 1 gigawatt by 2025.
“With its combination of power and cost efficiency, leveraging Canaan’s A1246 miners will give us a strategic advantage in meeting current demand,” says Mirakhmedov, founder of the firm as he stresses their looking forward to strengthening their position as a leading player in the global Bitcoin mining ecosystem.
Prior to its transformation, Genesis Digital Assets has been known to be one of the world’s largest and most experienced Bitcoin mining companies bringing more miners online and accounting for about 1.2% of Bitcoin’s global mining hashrate. Its goal is to expand to the European Nordic and the US.
As the underlying function that drives the Bitcoin network, mining plays a crucial role in the development of Bitcoin as an asset. Meanwhile, more Bitcoin mining activities continue to gain ground outside of China which used to be known for contributing about 65% of the Bitcoin network hashrate according to the University of Cambridge. From the heavy scrutiny of coal mines in Xinjiang, to new regulations on high energy-consuming companies in Inner Mongolia and the end of a local energy policy in Sichuan, the volatile regulatory environment for Chinese miners could pose some challenges including seeing China’s Bitcoin mining dominance drop which could impact Bitcoin’s global market.
This week, Reuters reports that the Beijing Municipal Bureau of Economy and Information Technology on Tuesday sent an “emergency notice” to the city’s data centre operators involved in cryptocurrency mining to better understand their impact on energy consumption.
A senior vice president of Canaan, Edward Lu, said their supercomputing solutions company is increasingly serving clients in parts of North America, northern Europe and central Asia for their cheap and abundant electricity and clear and predictable regulations. He said China used to be a place where cryptocurrency mining was thriving but the business is shrinking due to policies.