Genesis Digital Assets has now secured $431 million in funding aiming to expand its industrial-scale mining operations in the Nordics and the United States. The major bitcoin (BTC) mining firm previously raised $125 million in an equity funding round in July 2021, which was led by Kingsway Capital.
The latest funding round was spearheaded by Paradigm, one of the largest crypto investment firms backing major industry players like FTX and Coinbase. Matt Huang, the Paradigm co-founder, has also joined Genesis Digital’s board of directors, the company announced on September 21.
The other investors include the $11 billion asset manager Stone Ridge and its BTC subsidiary NYDIG and many venture capital companies. Also, investment management companies have invested in the company including FTX cryptocurrency exchange, Ribbit, Skybridge and Kingsway Capital, and Electric Capital.
Marco Streng, Genesis Digital CEO and co-founder, said that the new funds from the latest round will be used to help the firm to continue with its expansion operations with an aim of reaching 1.4 gigawatts in mining capacity by 2023. He added:
“The capital raised from this round will be used to expand our Bitcoin mining operations in locations where clean energy is easily accessible.”
One of the biggest Bitcoin miners in the US, Genesis Digital has been majorly increasing its mining power in recent months, accumulating a lot of hardware for mining the crypto. Sometime in late August, the company acquired 20,000 new BTC mining devices from Canaan, the Chinese mining giant. They signed an agreement to buy up to 180,000 additional miners in the future.
In recent days, Genesis Digital’s mining capacity has been constantly increasing, surging from about 140 megawatts as of July 2021 to reach more than 170 megawatts as of September. It had a total hash rate of 2.6 exahashes (EH/s) in July to reach 3.3 EH/s as of September.
Based on the company’s site, Genesis’ data center had a capacity of more than 143 megawatts as of July 2021, which translates to a total hash rate of 2.6 exahashes (EH/s). That amount is more than 2.6% of the global Bitcoin mining hash rate. The firm expects to add an extra 8.6 EH/s in the next 12 months.