Alameda Research Reportedly Invested $1.15B in Genesis Digital

Alameda Research, a now-bankrupt cryptocurrency trading firm established in 2017 by Sam Bankman-Fried and Tara Mac Aulay, has allegedly invested $1.15 billion in Genesis Digital Assets.

According to a Bloomberg report shared on December 2nd, the hefty investment was made in four rounds from August 2021 to April 2022. 

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In August 2021, Alameda invested $100 million, in January $550 million, in February $250 million and in April $250 million. During the interview at the DealBook Summit, Sam Bankman-Fried admitted to being involved in Alameda Research venture decisions, including the one to invest in Genesis Digital.

In 2021, Genesis managed to secure $556 million in two-round funding. At that time, Genesis aimed to collect funding to acquire 20,000 Bitcoin (BTC) miners from Cannan and a Texas-based data centre, as well as to expand in the United States and Northern Europe.

In recent months, the crypto mining sector has been hit hard by rising energy prices and the bear market. Based on reports, mining revenue is now around $11.67 million, which is the lowest number in two years. For example, according to the data shared by MacroMicro, an average Bitcoin mining cost is $19,089 per unit, which surpasses its current retail price of $17,223.

It is worth noting that Genesis Digital, a major United States-based Bitcoin mining company, has no connections with trading company Genesis Capital.

At the time of investing, Alameda Research believed that Genesis Digital was valued at around $5.5 billion.