Genesis Digital Assets raises $431 million in a new funding round

Genesis Digital Assets raises $431 million in a new funding round

By - min read

The funding follows another completed in July when the firm secured $125 million from investors

Genesis Digital Assets (GDA), one of the fastest-growing Bitcoin mining companies, has completed another funding round as it looks to further expand its mining operation.

The company announced on 21 September that it has secured $431 million in a new financing round from key investors in the crypto space. Paradigm led this particular round, with GDA raising the funds from other major players such as New York Digital Investment Group (NYDIG), UK-based Kingsway Capital, VC firm Ribbit, Electric Capital and crypto platform FTX.

Genesis Digital Assets raised $125 million in July, with Kingsway Capital leading the funding round. It followed aggressive growth for Genesis, with the firm targeting the funds towards the purchase of more Bitcoin miners for its facilities in North America as well as the Nordic region.

Genesis was one of the first firms to mine BTC, having minted the 'digital gold' since 2013. 

In June, it acquired 10,000 mining machines from mining hardware company Canaan, before adding another 20,000 miners in August. The purchases could increase by another 180,000 BTC mining machines, Genesis announced last month following its partnership with Canaan.

The additional miners have seen the Iceland-based firm significantly increase its computing power. According to the firm's website, its total hashrate as of September 2021 stood at 3.3 exahashes per second (EH/s).

This, per the data, accounted for over 2.4% of Bitcoin's global hashrate. The company wants to increase its capacity from the current 170 megawatts to around 1.4 gigawatts, adding 8.6 EH/s to its hashrate capacity by October 2022.

The latest funding round comes on the back of a fifth straight week of inflows into Bitcoin investment products, with the market sentiment positive despite recent price declines that have seen BTC touch lows of $40,000.

With the increased interest, the market appears to be looking at another upswing in the price of Bitcoin.