Genesis Digital Assets has become the latest Bitcoin mining company to raise millions of dollars for aggressive expansion plans, as China’s suppression of the industry has led to an outflow of miners.
July 28, Genesis Announce It has completed a US$125 million equity financing led by British Kingsway Capital. The funds will be used to purchase mining hardware and launch new data centers in the United States and Northern Europe.
According to the terms of the transaction, Kingsway Capital CEO Manuel Stotz will also join Genesis’s board of directors. Stotz emphasized Genesis’ extensive experience in mining. “The GDA team has been building high-profit, large-scale Bitcoin mining farms for the past eight years, and this industry has only existed for twelve years,” he said, adding:
“Bitcoin will become the most important technology for financial inclusion of the world’s poor and unbanked, and the mining industry provides security and makes it possible.”
Genesis’s current total computing power is 2.6 exahashes per second (EH/s), which is equivalent to more than 2.6% of the global computing power. The company expects to increase its capacity by another 5.5 exahash by the end of 2023, with the goal of data center capacity exceeding 1 GW.
Since its launch in 2013, Genesis estimates that it has mined more than $1 billion worth of Bitcoin.
In the case of China’s crackdown on the mining industry, Genesis is not the only company seeking to raise funds to expand its business. The US miner Stronghold applied $100 million initial public offering (IPO) increased its operating hash rate from 3,000 petahashes per second (PH/s) by approximately 75% to 5,300 on July 27.
On July 28, China-based BIT Mining announced that it has reached an agreement to acquire 2,500 new miners Valued at US$6.6 million for deployment in Kazakhstan, the hash rate is expected to increase by 165 PH/s.
Although industrial-scale mining companies have taken aggressive steps to expand their operations outside of China, Cointelegraph reports that In the past 12 months, the hash rate has become more and more decentralized, As smaller companies increase their share of global hashing power.
Cointelegraph also reported that China’s computing power has been steadily declining In more than a year before the crackdown, China’s computing power dropped from 75.5% of the global total in September 2019 to 46% in April 2021.