How Genesis Mining Took Over the Cloud Mining Sector
Genesis Mining is one of the largest cloud mining operations in the world. This crypto giant started from meager beginnings and grew into a global powerhouse in less than five years. Genesis Mining’s strategy of providing enterprise-level cloud mining to interested crypto investors has paid off massively and allowed the company to carve out a permanent home in the crypto space.
The Early Days
The journey starts with one of Genesis Mining’s co-founders, and long-time crypto supporter, Marco Streng. The year was 2011, and Marco had just built one of his first mining rigs. During his time as a home miner, Marco learned valuable lessons about his craft that would later help to shape the future of the entire crypto market.
The crypto market was more unstable at this time, and crypto miners were forced to build their rigs at home. Depending on the other factors involved in this process, such as electricity costs, users could easily find that they were losing money on their mining venture. Recognizing the need for a solution to this problem, Marco conceived the concept of Genesis Mining.
— Marco Streng (@Marco_Streng) January 27, 2017
The crypto space already had numerous cloud mining platforms, but many were simple Ponzi schemes rather than actual mining operations. As you would imagine, this type of flimsy business model doesn’t hold up well over long periods of time and usually ends with new investors losing all of their money.
Cloud mining is a particularly good business model for Ponzi schemes because users never actually enter your facility. The market became so saturated with these scams at one point that many crypto investors felt that all cloud mining operations were scams.
In the midst of all of this chaos, Genesis Mining utilized one of the pillars of the crypto community, transparency, to provide users with a new level of security and trust. Unlike the competition, Genesis Mining decided to follow the SEC’s strict guidelines. The company even filed for licensing for a USD 100 million investment fund back in 2016. This strategy set the mining platform apart from the competition, and, ultimately made the concept a huge success.
Today, Genesis Mining owns and operates some of the largest data centers in the world. The company keeps the exact locations of their data centers private, but over the years, investigators have confirmed that the company operates at least three major mining installations located in Iceland, Canada, and Bosnia.
Genesis Mining continued to shape the industry from day one. The developers created the first exclusive Ethereum mining farm known as Enigma. The facility utilizes a combination of state-of-the-art mining chips and geothermal energy to offer users competitive payouts on their investments. The facility is regarded as one of the largest mining farms in the world and is located in Iceland’s capital city, Reykjavik.
Genesis Mining Features
The Genesis Mining platform offers competitively priced cloud mining contracts to corporations and individuals globally. The platform provides users with a plethora of unique features such as Radiant. Radiant takes into account the entire spectrum of mining concerns including electricity costs, Bitcoin prices, and processing power. The platform automatically adjusts the mining rigs performance to provide you with maximum profitability.
Genesis Mining in the Crypto Community
Currently, the Genesis Mining platform has over two million registered users, and the company’s founders are pillars of the crypto community. The company’s CEO, Marco Streng, frequently speaks publicly at blockchain events around the globe. Forbes did a piece on Streng in which the magazine described him as a “27-year old mathematician building a Bitcoin empire.” Streng proved to be an advantageous entrepreneur, and his company made some strategic partnerships along their journey to bolster their market stance.
Genesis Mining Partners with Hive Blockchain
In September 2017, HIVE Blockchain Technologies Ltd. acquired Genesis Mining’s Reykjavik data center for $9 million and 67,975,428 common shares in the capital produced by the company. HIVE Blockchain is a partnership between Genesis Mining and Foire Group. The connection made HIVE Blockchain the largest listed blockchain infrastructure company in the world.
Cease and Desist from South Carolina Attorney General
It’s not always great being an industry pioneer, as Genesis Mining recently learned. In March of this year, the firm received a cease and desist from the South Carolina Attorney General. The cease and desist was meant to pause cloud mining operations while the Attorney General researched the validity of these operations. After five months of investigation, the court withdrew the cease and desist order, and the company was permitted to continue operations.
Genesis Mining company officials used the investigation as a way to educate lawmakers on the nuances of the crypto mining sector. The chief compliance officer of Genesis Mining, Shah Hafizi spoke publicly on the matter. He explained how his company is proud to work with regulators to provide a safer investment climate in the market.
Genesis Mining Ends Contracts Temporarily
This year saw some large market corrections befall the crypto space. Genesis Mining payouts took a big hit in January 2018 due to these massive losses in the crypto market. These losses resulted in smaller Bitcoin mining agreements becoming unprofitable. As a result, company officials decided to force users to upgrade to more substantial contracts or risk losing them.
The pause in lower tier Bitcoin mining contracts didn’t last that long, and by June, the company had reinstated many of its Bitcoin mining agreements. Today, the company offers a wide range of cloud mining contracts to users of all financial means. Users can now mine multiple cryptocurrencies from the platform. These cryptos include Bitcoin, Ethereum, Litecoin, Monero, and Zcash.
Genesis Mining: More Still to Come
Genesis Mining has managed to carve out a vital niche in the crypto market. This large cloud mining operation is now a critical component in the strategies of many crypto investors. When you consider the rising costs of electricity in many regions, it’s easy to see where firms such as Genesis Mining find their use. You should expect to see the cloud mining sector increase as more corporations follow in Genesis Mining’s footsteps.
Do you want to learn more about crypto mining? Check out the largest crypto mining facilities in the world.
Ethereum vs. EOS. In this comparison article, we examine blockchain's two largest decentralized app (dapp) platforms, giving...
Wondering if Celsius Network is a legitimate way to earn passive income on your crypto? We've got...
This week in crypto: Nevada immortalizes marriage, European regulators seek clarity, and NASA turns to blockchain. Read...
Jodie Gunzberg brings her experiences at the S&P Dow Jones, Morgan Stanley, and Graystone to the crypto as Managing Director of Coindesk Indexes.
ABOUT THE AUTHOR
ABOUT THE AUTHOR
David Hamilton aka DavidtheWriter has published thousands of cryptocurrency related articles. Currently, he resides in the epicenter of the cryptomarket – Puerto Rico. David is a strong advocate for blockchain technologies and financial sovereignty.