The China-based bitcoin ASIC mining machine producer Canaan has introduced the corporate has cast a partnership with Genesis Digital Assets, and the 2 firms have now signed a deal for a large purchase order. Genesis will buy 20,000 bitcoin miners from Canaan and the mining operation also has the option to buy a further 180,000 mining rigs from the Chinese ASIC manufacturer.
Canaan Sells Genesis 20K Miners, Genesis Can Buy 180K More
Bitcoin mining rig producers have made very large sales during the second half of 2020 and into 2021. As an example, in December 2020, News reported on Marathon’s record-breaking acquisition of 70,000 high-performance bitcoin miners from Bitmain for $170 million. That same month, Riot Blockchain bought 15,000 Antminers from Bitmain.
In the course of the first week of August 2021, Marathon purchased 30,000 miners from Bitmain. Canaan sold 11,760 next-generation A1246 ASIC Avalonminers to a company called Mawson Infrastructure Group in April. At the end of that same month, Genesis Digital Assets purchased $93 million worth of ASICs from Canaan. In mid-June, Genesis revealed it bought 10,000 ASIC bitcoin miners from Canaan.
Now Genesis and Canaan have announced the companies have settled on another agreement. According to the announcement on August 31, the mining operation Genesis has bought 20,000 bitcoin mining machines from the China-based mining rig maker.
But the two firms are also trying to decide on the “largest mining machine deal to date,” as Genesis now has the choice to buy 180,000 ASIC miners from Canaan. The co-founder and executive chairman of Genesis Digital Assets, Abdumalik Mirakhmedov, says the firm hopes to increase the capacity a great deal by 2023.
“The Bitcoin mining machines from this latest purchase order are a part of our ongoing efforts to quickly scale our bitcoin mining operations in North America and the Nordics where we’re focused on the energy that comes from renewable sources,” Mirakhmedov mentioned in a statement. “These new machines will dramatically increase our capacity as we work towards our aim to increase our capacity to 1.4 gigawatts by the end of 2023.”
Canaan Shares Dip 74% Since Mid-March
Canaan is a publicly-listed agency, which has shares that trade on Nasdaq, and each share on Tuesday is swapping for $9.24 per unit. Nevertheless, Canaan (Nasdaq: CAN) shares have misplaced 74.61% in worth since March 11, 2021, when a single CAN share exchanged arms for $36.40. Nangeng Zhang, the chairman and CEO of Canaan, says the corporate stays “diligent in serving to miner purchasers” develop.
“Since we entered the long-term partnership with Genesis Digital Assets earlier this year, we have now reached several nice offers,” Zhang said. “This order with an option of future massive purchases further solidifies our collaborations and reflects both parties’ confidence within the prospect of the cryptocurrency mining industry,” the Canaan CEO added.