Tag - Canada’s square mining

Canada’s square mining to Offer Nex-Gen ASIC Chips

Canada’s square mining to Offer Nex-Gen ASIC Chips

Canada-based Square Mining Ltd is entering the crypto space by offering next generation application-specific integrated circuit (ASIC) chip, as well as, bitcoin mining rig. For this purpose, the investment firm with a focus on tech projects and global resource exploration has raised C$25.5 million or US$19.5 million through the non-brokered private placement of equity financing. It is meant to invest in its change of business that involves designing, developing, and testing of the chips. Once this is done, it will engage in mass production.

Second Generation Chips

The Canadian firm indicated that part of the funding would be earmarked for additional research and development program. The company is keen to develop second-generation chips apart from rigs besides covering expenses of marketing, promotion, and distribution, according to a report in news.bitcoin.com. This would mean that a new competitor is emerging in the mining hardware market before the current year ends. The company is also keen to establish its own mining facilities for digital coins.

Square Mining expressed its confidence of completing the manufacturing, as well as, assembling of a pilot production test run in respect of first bitcoin mining ASIC chip before the fourth quarter ends in the current year. The company is also hoping on the similar lines as far as the rig is concerned. The firm has aligned with Peter Kim, a design and system engineering architecture specialist, in March enabling to make 10nm chips. This is a key to its aim of growing in the crypto sector.

Square Mining will have a stake of 66 2/3 percent in the joint venture, which will be in South Korea, while Kim will hold the rest of 33 1/3 percent. The JV is responsible for not only the design and development but also the commercialization of the specialized hardware. After the completion of the ASIC chip development, Square Mining would manage the sales of bitcoin, as well as, other digital coin mining systems.

At the same time, it would also work towards establishing its own mining facilities though it has not disclosed the location. The Canadian firm thinks that the nextgen chips, as well as, the system architecture are crucial for cryptocurrency sector growth. Currently, China-based Bitmain is the biggest miner, and Square Mining entry will mean that it would boost the competition in the sector. Significantly, the Chinese firm is enjoying a market share of 80 percent.

Profitable Business

Bitmain delivered profits of over $3 billion last year thus suggesting that mining of cryptos are a profitable business venture. The Chinese firm is trying to expand its product base by introducing two new Wi-Fi routers, which are capable of mining blake2b and x1 digital currencies such as silicon and dash.

There are also other players like Samsung that is keen on getting a market share. The company gained from bitcoin mining chips production when it reported increased profits this spring. Aside from this, GMO, the Japan-based Internet giant, has introduced an upgraded type of its miner for bitcoin. The new rig could mine bitcoin core, as well as, bitcoin cash.

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