Genesis Digital, a cryptocurrency miner, has received a more than one-billion-dollars investment from Alameda Research. Before cryptocurrency prices crashed, SBF inquired about the huge funding of Genesis.
The largest venture investment made by FTX partner company Alameda Research was in the cryptocurrency production corporation Genesis, which was also the reason for the bankruptcy of the exchange.
The documents published
Bloomberg published documents on December 1 that feature a detailed report on FTX money transfers and deals. In less than nine months, Genesis had gotten a money infusion of more than one billion dollars from Alameda.
The capital infusion took place prior to the decline in cryptocurrency prices from the summer of last year to the spring of 2022. With $175 million in assets locked in FTX trading accounts, Genesis organizations were the largest US Bitcoin miner and trading company.
The company was not associated with Sam Bankman-Fried at first. But later the former CEO acknowledged his involvement in Alameda’s business choices, in particular, the investment in Genesis company, after at first neglecting such info when asked by the governors.
He was involved in four different decisions made by Alameda’s management, including its capital deployment.
The lost opportunities and the following crisis
To support its ambitious growth plans, Genesis company got financing aid of more than half a billion dollars in 2 unconnected finance-gathering events in 2021.
Purchasing a Canaan-based Bitcoin miner, opening a brand-new data storage in the USA, and developing operations in the US and Northern Europe were all part of the funding’s original plans.
Increasing electricity prices and a declining value of crypto led to squeezing mining companies’ profit margins. A number of factors, as highlighted in the most recent Hashrate Index Q3 mining report, have contributed to a sharp decline in hash value and advanced expenses to get one Bitcoin token.
Due to a weak market and rising processing power, BTC miner earnings decreased to $11.67 million, their lowest level in two years. Investor confidence has been damaged by the latest FTX crash, which is predicted to prolong the cryptocurrency winter.