Canaan Sells 10,000 Bitcoin Miners To Genesis Digital Assets

Bitcoin mining firm Genesis Digital Assets has purchased an additional 10,000 Bitcoin miners from the ASIC machine manufacturer Canaan.

By the end of the month, Canaan plans to complete the order of 10,000 A1246 and A1166 Pro Avalonminers.

The move isn’t the first time the two companies have dealt with each other. Earlier this year, Genesis Digital Assets bought $93.6 million worth of AI2146 bitcoin miners from the Beijing-based manufacturer.

According to the co-founder of Genesis Digital Assets, Abdumalik Mirakhmedov, the purchase will help increase the company’s hash rate “by a minimum of twofold over the coming months.”

Canaan Expects $250 million In Revenue Amidst The Mining Boom

Canaan expects to see $250 million in revenue by the end of the quarter. This follows from the fact that the Chinese ASIC miner manufacturer has made many business moves this year.

Other Canaan orders include the likes of Mawson Infrastructure Group and Hive Blockchain. The company has also launched Avalonminer A1066I, a submerged, liquid-cooled miner machine.

Mirakhmedov says the following about their partnership with the manufacturer:

We are excited to continue our strategic partnership with Canaan to support these plans

Related Reading | Clean Bitcoin Mining Solutions Grow Thanks To Ongoing China Crackdown

The Genesis Digital Assets CEO further comments:

Our strategy has always been to grow faster than the rest of the market. Achieving this requires building and launching new data centers, expanding the capacities of our existing facilities, and installing first-class hardware. Our recent purchase orders for Canaan’s Avalon Miners will help us to increase our hash rate by a minimum of twofold over the upcoming months.

Not just Canaan, but also other mining manufacturers like Microbt and Bitmain are getting orders for thousands of rigs as the mining boom continues.

Global Chip Shortage And The Mining Boom

Since the beginning of the COVID pandemic, the world has been observing a global shortage of not just chips, but also other material.

GPUs are among the worst-hit commodities right now, and the mining boom has only made things worse.

In a recent interview, Nvidia CEO Jensen Huang commented on the issue. At the moment, Nvidia’s GPUs are mainly used for ETH mining.

The reason why Ethereum chose our GPUs is because it’s the largest network of distributed supercomputers in the world. It’s programmable. When Bitcoin first came out, it used our GPU.

Related Reading | Nvidia: Ethereum’s PoS Upgrade Will Set Back Graphics Card Demand

He also said that he is excited for the switch to Proof of Stake. A PoS system would mean a more efficient system that doesn’t rely on computing power, and thus easing up the GPU supply.

However, the chip shortage is here to stay for a while now, and even if the mining boom ends, it’s very unlikely to subside until next year.

Bitcoin Price

BTC continues a slight upward trend as its value increases 3.1% in the past week.

BTC continues an overall positive trend | Source: BTCUSD on TradingView

Featured image from Unsplash.com, chart from TradingView.com

Source: https://bitcoinist.com/canaan-sells-10000-bitcoin-miners-to-genesis-digital-assets/?utm_source=rss&utm_medium=rss&utm_campaign=canaan-sells-10000-bitcoin-miners-to-genesis-digital-assets