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June 27, 2022
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Genesis Digital Assets buys 20,000 Bitcoin mining platforms across the US

Genesis Digital Assets approached its goal of achieving a total mining capacity of 1.4 gigawatts in two years.

US miner Genesis Digital Assets buys 20,000 Bitcoin mining rigs across the US, Genesis has agreed to buy BTC mining systems from blockchain hardware giant Canaan, according to a release press release published today.

Canaan has also given Genesis the option to purchase up to 180,000 more machines in the future.

“The Bitcoin mining machines from this latest purchase order are part of our ongoing (sic) efforts to rapidly scale our Bitcoin mining operations in North America and the Nordic countries, where we are focused on energy coming from renewable sources.” , explained Abdumalik Mirakhmedov, Co-founder and CEO of Genesis.

He added that these new platforms should increase “dramatically” the company’s mining capacity and are part of Genesis’ overall plan to reach 1.4 gigawatts by the end of 2023.

As of July 2021, Genesis accounted for 2.6% of the total computing power of the Bitcoin network, according to the company’s website.

Post China bitcoin mining

The influx of additional mining systems will likely have a positive effect on the Bitcoin hash rate (the total computing power of the blockchain) – which is still somewhat recovering after China began its massive crackdown on mining in May.

At the time, Bitcoin’s hash rate – as well as its price – plummeted when miners began moving their operations out of China.

This resulted in several consecutive drops in Bitcoin mining difficulty as the network had to automatically readjust in the face of a massive exodus of miners. Mining difficulty refers to how easy it is for miners to earn the reward of a blockchain network.

China controlled nearly 80% of the Bitcoin hash rate just a year ago, leading to a “cold War” with the US for blockchain supremacy. After the crackdown in May, some experts argued that America (and perhaps other countries) will finally gain an advantage in terms of Bitcoin mining power.

China’s share of the global Bitcoin hash rate has dropped to just over 46% in recent months, according to the Cambridge Bitcoin Electricity Consumption Index. In turn, the US now accommodates 16.1% of Bitcoin’s total computing power.

And with the addition of 20,000 Bitcoin miners purchased by Genesis – and potentially 180,000 more – America’s share is likely to grow even larger in the future.

Source: Decrypt

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