Canaan, maker of application-specific integrated circuits (ASIC) for bitcoin mining rigs, announced that it has received a follow-up contract from Genesis Digital Assets for 30,000 mining machines. The sale is part of an agreement between Canaan and Genesis that allows the mining company to purchase up to 180,000 ASIC bitcoin mining rigs.
Canaan secures follow-up contract for 30,000 Bitcoin miners from Genesis Digital Assets
End of August, Genesis Digital Assets bought 20,000 from Canaan‘s top ASIC bitcoin mining rigs, stating that it has an option to buy 180,000 more. According to the announcement, Genesis Raised $ 431 million by strategic investors in late September, and the following week it was announced that a new data center in Texas. Now Genesis is continuing its deal with Canaan and has signed a follow-up contract with the manufacturer of mining rigs for 30,000 more ASIC miners.
Abdumalik Mirakhmedov, Genesis co-founder and chairman of the board, stated that the 30,000 mining platforms will strengthen the company’s operations. “This latest machine 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,” said Mirakhmedov.
According to the two companies, the option agreement for 180,000 ASIC miners is considered to be one of the “largest deals in the mining industry with mining machines so far”. “The option agreement consists of three phases in which mining machines are purchased for 30,000, 60,000 and 90,000 units, respectively. The machines acquired from the first phase of the contract are expected to be delivered in the first quarter of 2022, ”said Canaan.
The top piece of equipment from the mining rig manufacturer is the Avalonminer 1246, which launched in January last year. The Avalonminer 1246 model produces around 90 terahash per second (TH / s) and draws 3,420 watts from the wall. At $ 0.12 per kilowatt hour (kWh) at today’s Bitcoin exchange rate, Canaan’s machine would generate about $ 15 a day in profit, according to asicminervalue.com metrics.
Second-sales prices for the Avalonminer 1246 range from $ 7,000 to $ 9,000 per device, while Canaan’s website does not list a price for the device. Canaan’s shares, listed on the Nasdaq, traded for $ 5.93 on December 30, 2020, and today the shares are trading for $ 5.42, or 8.6% lower. On March 11, 2021, the company’s stock peaked at $ 36.40, down 85.10% from its 2021 high at $ 5.42.
What do you think of Genesis hiring 30,000 miners in Canaan and the option to buy more? Let us know what you think on this matter in the comments below.
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Source: Crypto News Austria