Chinese crypto mining hardware manufacturer Canaan has now secured a contract from major mining company Genesis amid China’s clampdown on crypto mining.
The contract details a purchase order for 30,000 units of Canaan’s proprietary Avalon miners and an additional execution of 150,000 units of the same product later.
The China-based mining hardware manufacturer has an extensive catalog of mining rigs available for purchase. Its innovative solutions have attracted the patronage of large crypto mining companies globally.
The manufacturing firm continues to operate normally and is on schedule with its various manufacturing activities, even with the Chinese regulatory bodies clamping down on mining and related activities in the industry.
The recent completion and renewal of the purchase order deal with Genesis Group is evidence of the manufacturing company’s relevant success in the crypto industry.
Genesis Group and Canaan Inc
The Genesis Group is one of the world’s largest cryptocurrency mining companies. It is based in the Nordic country Iceland, a base for crypto mining companies globally. It has since expanded its mining operations to the U.S. and Europe.
On the other hand, Canaan is Hangzhou based crypto mining rig manufacturer. It is the second-largest producer of Bitcoin mining rigs worldwide by basis of its computing power.
The dealership agreement between these two crypto giants is not news. As early as June 2021, Genesis Group has been a significant patron of Canaan; it had purchased 10,000 units of mining hardware from Canaan. The purchase came after the duo announced a long-term coalition plan.
Later in July, Genesis revealed its acquisition of revenue worth $25 million, raised by equity fundraising to facilitate its expansion plans.
Genesis continued to make massive purchases from Canaan to further expand out of Iceland. In August, it bought 20,000 units of mining rigs from Canaan and sought an option of further purchase increment for up to 180,000 units of equipment. The additional option was approved by Canaan, making the deal one of the biggest manufacturing companies approved in 2021.
Cryptocurrency Mining In Canada
Canada is currently home to the highest number of cryptocurrency mining companies worldwide. It is now considered an all-important hub in the crypto industry. The development can be attributed to its relatively cheap electricity cost and its soft regulations in the industry.
The unrestrained accommodations nevertheless come with a cost. The cost can be seen in the recent announcement made by the country, revealing its ban on new crypto miners due to the energy crisis it was facing.
The energy crisis it claimed was due to the low water levels in its hydro-powered power plants and energy deliverance failure from a contracted third party.
However, these setbacks do not offset the advantage that the country enjoys from being a friendly host to miners. Canada has reported an all-inclusive growth in its economy this year. The development features a net profit of $72.5 million in the third quarter this year which is a mile away from its record of $13.5 million loss in the same period last year.
