While China continues to stamp out cryptocurrency mining, the mining rig producers continue raking in the deals. The latest: Canaan, a Chinese crypto mining rig maker, has secured a follow-on contract from Genesis Digital Assets for 30,000 units of Avalon Bitcoin mining machines, with another 150,000 units to be executed.
- Back in August, Canaan granted Genesis an option to purchase up to 180,000 additional Bitcoin mining machines along with its original sales contract of 20,000 machines, to fuel the growth of Genesis’s operation in North America and the Nordics.
- The deals came after Genesis in June bought 10,000 machines from Canaan, as part of the duo’s long-term partnership. In July, Genesis announced that it had raised US$125 million in equity funding to support its expansion plans.
- “Being a trusted computing solution provider with solid delivery capabilities, we have been supporting Genesis Digital Assets as they expand their mining farms across multiple geographic regions around the world,” Nangeng Zhang, chairman and CEO of Canaan, said in a statement released today. “We are also pleased to work with clients like Genesis Digital Assets to enhance renewable energy applications in mining.”
- Abdumalik Mirakhmedov, co-founder and executive chairman of Genesis Digital Assets, said that the new order will “support our efforts to rapidly scale our operations as we work towards our goal of increasing our capacity to 1.9 gigawatts by the end of 2023.”
- Canaan has seen strong growth this year. Its third-quarter report showed that it recorded a net income of 467.2 million yuan (US$72.5 million) in the period, compared to a net loss of 86.4 million yuan (US$13.5 million) in the same period last year, and a net income of 167.3 million yuan (US$26.2 million) in the second quarter this year.