Genesis Digital Assets, the largest crypto mining firm and venture capital fund made by Alameda Research, a subsidiary of FTX, is at the center of bankruptcy. which according to the documentrevealAs reported by Bloomberg on Dec. 3, Genesis Digital raised $1.15 billion from Alameda in less than nine months.
The capital increase happened before the crypto price crashed. Between August 2021 and April this year, Genesis Digital is a major Bitcoin mining company in the United States. Nor is it related to Genesis Capital, a trading firm with $175 million of funds locked in their FTX trading accounts.
Former FTX CEO Sam Bankman-Fried admitted thatHe was involved in Alameda’s venture decisions, including its investment in Genesis Digital, despite initially denying it to regulators. But according to documents, Alameda has invested in four different periods: $100 million in August 2021, $550 million in January, $250 million in February, and $250 million in April 2022.
Last year, Genesis Digital raised a total of $556 million through two separate funding rounds to drive its aggressive growth plans. Some of the funds went to purchase 20,000 Bitcoin mining rigs from Canaan, a new data center in Texas. and expanding operations in the United States and Northern Europe.
The recent FTX crisis is expected to prolong the crypto winter as investor sentiment plummets, as Coinbase reports show that stablecoin dominance has reached a new high of 18%, indicating that the liquidity crisis may extend. Out at least until the end of 2023.
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