ASIC bitcoin mining rig manufacturer and chipmaker, Canaan, announced that the company has signed a $ 93.63 million purchase order with mining company Genesis Digital Assets. Genesis will acquire Canaan’s A1246 Avalonminer rigs producing 90 terahash per second (TH / s) and deliveries will begin in the second half of 2021.
Canaan and Genesis Digital Assets announce a strategic partnership
According to an announcement by Beijing, China-based company Canaan (Nasdaq: CAN), a new strategic partnership has been unveiled between the company and Genesis Digital Assets. The two companies have signed a purchase agreement worth $ 93.63 million as Canaan plans to supply the company’s next-generation A1246 Avalonminer devices to Genesis. The machines will ship to Genesis in the second half of 2021, the company’s announcement details.
Canaan’s Application Specific Integrated Circuit (ASIC) A1246 Avalonminer is a device that processes the SHA256 consensus algorithm. This means that the machines are capable of mining the most mined SHA256 tokens such as bitcoin (BTC), bitcoin cash (BCH) and bitcoinsv (BSV). The Avalonminer A1246 series has a hashrate rate of approximately 90TH / s and an efficiency rating of approximately 38 joules per terahash (J / TH).
The partnership announcement notes that Genesis will add 117 megawatts (MW) of bitcoin computing capacity, adding to the company’s current 140 MW.
“This has been a very exciting year for mining companies as we see a continued interest in crypto assets,” Genesis Digital Assets founder Abdumalik Mirakhmedov said during the announcement. “With its combination of power and cost efficiency, using Canaan’s A1246 miners will give us a strategic advantage in meeting current demand. By working together, we look forward to strengthening our position as a leading player in the global bitcoin mining ecosystem, ”added the Genesis director.
CAN shares are down 8% since Canaan’s recent deal with Mawson Infrastructure Group
Canaan’s deal with Genesis follows the company’s recent sale of 11,760 Avalonminers to the US-listed Mawson Infrastructure Group (WIZP: OTCQB). Shares of Canaan were up after Mawson’s announcement, but have since seen a -8.56% decline from $ 13.77 a share to its current price of $ 12.59 a share.
Nangeng Zhang, CEO and Chairman of Canaan said the company is delighted to partner with Genesis and noted that the deal will further Canaan’s global presence.
“2021 has been an exceptionally fruitful year for the bitcoin mining industry amid increasing interest from institutional players and new geographic hotspots for mining operations,” Zhang noted on Wednesday.
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