Genesis Digital Assets, a crypto mining firm supported by Sam Bankman-Fried’s former hedge fund, is reportedly considering going public with an initial public offering (IPO) in the United States amidst the growing momentum in the crypto industry.
Sources from Bloomberg have revealed that Genesis Digital Assets is currently in talks with advisors about a potential listing. The company is planning to kick off a pre-IPO funding round in the upcoming weeks, according to an undisclosed source.
The decision to pursue an IPO comes on the heels of a series of expansion initiatives by Genesis Digital Assets this year. In May, the company launched a new mining center in Argentina and recently announced a 36MW facility in Texas.
Although there has been no official statement from Genesis Digital Assets regarding the IPO discussions, the report suggests that talks are ongoing and fundraising plans are subject to change.
With a power capacity of over 500 megawatts and 20 data centers spread across North America, Europe, Central Asia, and South America, Genesis Digital Assets has established itself as a prominent player in the crypto mining space. The company also has offices in Houston and Dubai, as indicated on its website.
Originating from one of the earliest crypto mining firms, Genesis Digital Assets secured more than $1 billion in funding from Alameda Research, previously led by Bankman-Fried prior to his downfall. The investments were made in multiple installments, totaling $1.15 billion.
Following the bankruptcy declarations of FTX and Alameda, which led to a market meltdown in the digital assets sector, the mining industry experienced a significant downturn. This challenging period pushed many Bitcoin miners into bankruptcy amid the crypto winter of 2022.
Despite the setbacks, the industry has shown resilience in the past two years, propelling Bitcoin’s price to record highs. Meanwhile, Bankman-Fried faced legal consequences, including being convicted on multiple charges and receiving a lengthy prison sentence along with a substantial financial penalty.
Overall, the potential IPO of Genesis Digital Assets marks a significant development in the crypto mining sector and reflects the ongoing evolution and maturation of the broader cryptocurrency industry. As the company explores opportunities for growth and expansion, investors and stakeholders will be closely monitoring its progress in the coming months.