The Iceland-based bitcoin mining company Genesis Digital Assets announced on Tuesday that it had raised $431 million in a strategic funding round led by crypto-focused investment firm Paradigm.
Investment Funds To ‘Greenify’ Bitcoin
The rising interest in crypto investments has given Genesis Digital Assets the opportunity to raise the most capital i.e. $431 million in one single round. The round was led by crypto investment firm Paradigm, leading to its co-founder and managing partner Matt Huang joining the Genesis board of directors.
According to Genesis Digital Assets co-founder and CEO Marco Streng, the funds raised will enable the company to move deeper into the clean energy space to moderate the energy-intensive nature of Bitcoin mining.
“As we work towards our goal of bringing 1.4 gigawatts online by 2023, the capital raised from this round will be used to expand our bitcoin mining operations in locations where clean energy is easily accessible. We’re excited to have strategic investors on board and look forward to executing on our mission together”
Genesis’s Previous Funding Round
The funding round also included other bigwig investors like BTC-focused financial service firm NYDIG, investment management company Stoneridge, crypto firm FTX, venture capital firms Ribbit and Electric Capital, global investment firm SkyBridge Capital, and private equity fund Kingsway Capital. The mining company had held a previous funding round back in July to fund its North American and Nordic expansions, where Kingsway Capital had invested $125 million.
In their bid for expansion, Genesis had recently purchased 20,000 units of the latest mining equipment from Canaan with an option to buy another 180,000 units.
Genesis Digital Assets - Past, Present, And Future
Genesis Digital Assets, which offers cloud mining services, was started in 2013 by the co-founders of Genesis Mining to be a self-mining business. Since its inception, the company has built over 20 industrial-scale mining farms, brought over 300,000 miners online, and mined over $1 billion in Bitcoin. With a hashing power of over 3.3 exahashes per second, Genesis Digital Assets accounts for about 2.5% of the current Bitcoin network’s hash rate. It is planning to use the proceeds from the latest round to fund its hash rate expansion and achieve the goal of reaching a data center capacity of 1.4 gigawatts by the end of 2023.
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