Application Specific Integrated Circuit (ASIC) Bitcoin mining equipment manufacturer Jianan Zhizhi announced that the company has won a follow-up contract for 30,000 mining machines from Genesis Digital Assets. The sale is part of an agreement between Canaan and Genesis, which gives the mining business the option to purchase up to 180,000 ASIC Bitcoin mining equipment.

Canaan receives follow-up contracts for 30,000 Bitcoin miners from Genesis Digital Assets

At the end of August, Genesis Digital Assets Purchased 20,000 of CanaanOf the top ASIC Bitcoin mining equipment, and explained that it can choose to buy more than 180,000.After the announcement, Genesis $431 million raised From a strategic investor at the end of September, it revealed a New data center In Texas. Now, Genesis is following up the transaction with Canaan and has signed a follow-up contract with a mining equipment manufacturer to add 30,000 ASIC mining machines.

Genesis co-founder and executive chairman Abdumalik Mirakhmedov explained that 30,000 mining equipment will strengthen the company’s operations. Mirachmedov said: “As we strive to achieve the goal of increasing production capacity to 1.9 GW by the end of 2023, the latest machine orders will support our efforts to rapidly expand the scale of operations.”

According to the two companies, the 180K ASIC mining machine option agreement is considered to be one of the “largest mining machine transactions in the mining industry to date.” “The option agreement is divided into three phases to purchase 30,000, 60,000, and 90,000 mining machines. The machines acquired in the first phase of the contract are expected to be delivered in the first quarter of 2022,” Canaan said.

The top equipment of this mining machine manufacturer is the Avalonminer 1246 released in January last year. The Avalonminer 1246 model generates approximately 90 terahash (TH/s) per second and pulls 3,420 watts from the wall. According to the indicators of asicminervalue.com, at $0.12 per kilowatt hour (kWh) and today’s Bitcoin exchange rate, Canaan’s machine will generate approximately $15 in profit per day.

The secondary sale price of Avalonminer 1246 is approximately US$7,000 to US$9,000 per device, and Canaan’s website does not show the price of the device. The stock of Jianan Zhizhi listed on NASDAQ was traded at US$5.93 on December 30, 2020. Today’s share price is US$5.42, a decrease of 8.6%. On March 11, 2021, the company’s stock price hit a high of 36.40 US dollars, and the stock price was 5.42 US dollars, which is 85.10% lower than the 2021 high.

What do you think about Genesis ordering 30,000 Canaan mining machines and choosing to purchase more mining machines? Please tell us your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the head of news at Bitcoin.com News and a fintech reporter living in Florida. Since 2011, Redman has been an active member of the cryptocurrency community. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 4,900 articles about destructive protocols emerging today for Bitcoin.com News.