Released documents shows that in less than nine months, $1.15B was injected.
Genesis Digital is a leading Bitcoin mining business in the United States.
Bankrupt FTX subsidiary business Alameda Research made its largest venture investment in Genesis Digital Assets, a cryptocurrency mining firm. On December 3rd, Bloomberg released documents showing that in less than nine months, Genesis Digital had raised $1.15 billion from Alameda.
Injection of funds took place between August 2021 and April of this year, far before the recent drop in cryptocurrency prices. Genesis Capital, a trading firm, has $175 million stuck in an FTX trading account, but is unrelated to Genesis Digital, a leading Bitcoin mining business in the United States.
Ambitious Expansion Aspirations
Despite his initial denials to authorities, former FTX CEO Sam Bankman-Fried has come clean about his involvement in Alameda’s venture choices, such as the investment in Genesis Digital. Alameda’s capital deployment occurred at four distinct times, as seen by the below-mentioned dates: $100 million in August 2021, $550 million in January 2022, $250 million in February 2022, and $250 million in April 2022.
Throughout the course of last year, Genesis Digital amassed $556 million across two investment rounds to support its ambitious expansion aspirations. The company planned to use the money to buy 20,000 Bitcoin miners from Canaan, open a data center in Texas, and increase its presence in the United States and Northern Europe.
Profit margins in the mining industry have been under pressure due to growing energy prices and the bear market. Hashrate Index’s most recent quarterly mining report identified many variables that have contributed to the dramatic decline in hash price and increase in the cost of producing 1 BTC. Due to weak market performance and higher computational demand, Bitcoin miners’ income plummeted to $11.57 million, a two-year low.