Genesis Digital Assets purchases 20,000 Bitcoin miners after raising $125 million.

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Canaan has also given Genesis Digital Assets the option to purchase up to 180,000 more Bitcoin mining rigs.

Genesis Digital Assets, a Bitcoin (BTC) mining company based in the United States, has expanded its cryptocurrency mining capability with a new agreement with Chinese crypto mining powerhouse Canaan.

Genesis announced on Tuesday that it has secured a purchase order for 20,000 Bitcoin miners from Canaan.

Canaan has also given Genesis the option to purchase up to 180,000 additional BTC mining machines in conjunction with the new transaction.

Abdumalik Mirakhmedov, co-founder and executive chairman of Genesis, stated that the fresh batch of Bitcoin miners will help the company grow its mining activities in North America and the Nordics. He went on to say that Genesis is focused on scaling up in these areas because the company is focused on sustainable energy.

“These new machines will dramatically increase our capacity as we work towards our goal to increase our capacity to 1.4 gigawatts by the end of 2023,” Mirakhmedov said. According to the company’s website, Genesis’ data center had a capacity of over 143 megawatts as of July 2021, or a total hash rate of 2.6 exahashes (EH/s), which is more than 2.6% of the global Bitcoin mining hash rate.

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Canaan CEO Nangeng Zhang pointed out that the company has secured several deals with Genesis after entering a long-term partnership in Q1 2021, starting with a $93 million Avalon miner deal. Since then, Genesis and Canaan have continued advancing their strategic partnership, signing a 10,000 Bitcoin miner sale in July.

“This order with an option of future large purchases further solidifies our collaborations and reflects both parties’ confidence in the prospect of the cryptocurrency mining industry,” Zhang added.

Genesis finished a $125 million equity investment round in late July, so the latest Bitcoin miner purchase comes at a good time. The round, led by the United Kingdom’s Kingsway Capital, aims to raise funds for the purchase of additional mining hardware and the establishment of new data centres in the United States and the Nordic region.

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