• 26 May, 2024

Alameda Invested $1.15B in Genesis Digital Assets

The bankrupt FTX’s trading arm, Alameda Research, reportedly invested $1.15 billion into Genesis Digital Assets (GDA). This is the largest venture investment by Alameda and FTX, soaring the company valuation.

During a funding round in April 2022, Genesis Digital Assets (previously named Genesis Mining) was valued at $5.5 billion. A total of four individual investment rounds were made between August 2021 and April 2022, per FTX and Alameda’s venture portfolio.

Genesis Digital Assets, a crypto mining company, is not at all associated with or related to Genesis Trading. During the abrupt demise of FTX, it was Genesis Trading initiating a suspension on redemptions.

A $100 million initial investment was made in August 2021. In January, $550 million were invested. Then in February, an investment of $250 million was made. Finally, an additional $250 million were added in April.

Plummeting Bitcoin price, rising energy prices, and increased rivalry among miners has made the crypto mining industry a troubled sector. Mining revenues dropped to a record low, and even Genesis Digital Assets got affected.

As the crypto slump persists, miners are currently closing down their operations. Iceland-based Genesis Digital still hasn’t acknowledged the implications of FTXs investment in its company.

Genesis Mining, had initially ventured into mainland China. However, the corporation had to adjust its operations, since in May 2021, China decided to outright ban any crypto mining in its borders.

This resulted in the birth of Genesis Digital Assets. GDA is an entity with an altered business strategy. GDA went from being a provider of cryptocurrency services, to one that focuses on self-mining Bitcoin.

Genesis Digital Assets, and Genesis Global (owned by the Digital Currency Group or DCG), are two completely different entities.

After suffering from FTX collapse, Genesis Global Capital hired restructuring expert investment bank Moelis & Company to prevent potential bankruptcy.

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