A trading company connected to the bankrupt exchange FTX, Alameda Research, has made a $1.15 billion investment in bitcoin miner Genesis Digital Assets.
This was Alameda and FTX’s highest venture investment, estimated at $5.5 billion in an April funding round, according to documents made available to Bloomberg that showed the venture portfolio for both companies.
Four times, Alameda made investments in the cryptocurrency miner. It made a $100 million investment in the miner in August. $250 million in February, $550 million in January, and $250 million in April were invested.
The lending unit of Genesis Trading, whose redemptions were stopped after FTX’s bankruptcy, has no connection to the cryptocurrency miner.
April 2021 saw the founding of Genesis Digital Assets by Marco Streng. Streng had previously founded Genesis Mining, which finished the construction of its first facility in Iceland in 2014.
The announcement comes as energy costs are rising and bitcoin’s price is continuing to fall, placing a heavy burden on crypto miners.
On November 22, Core Scientific issued a “significant doubt” warning after publishing a $435 million loss. The Block Research reports that mining revenue decreased by almost 20% in November.
