By
Chimamanda U. Martha
April 26th, 2024
Swan Mining, the recently unveiled unit, plans to add 3 more mining farms to the 7 existing, taking the total hashpower to 8 exahash.
Bitcoin investment platform Swan Bitcoin has announced an expansion into Bitcoin mining, revealing its new Swan Mining division. Swan Bitcoin’s Chief Executive Officer (CEO) Cory Klippsten says the company has been mining Bitcoin under the radar since last July. Swan Bitcoin has mined over 750 Bitcoins and is now ready to publicize its efforts.
About Swan Mining
“Swan Mining is a great example of our company thesis playing out. With our exclusive focus on Bitcoin adoption and helping the industry grow, we continue to attract the talent, opportunities, and capital required to launch new business lines and grow them rapidly,” said Klippsten.
At the moment, the company has seven existing mining farmers that produce 4.5 exahash of mining power, supported by 160 megawatts of electricity. The company plans to add three more mining farms, expected to pump its hashpower to 8 exahash. The overall plan is to have mining farms within and outside the US, with 50% in the country. Swan CIO and head of Swan Mining, Rapha Zagury said:
“We are proud to play a role in keeping Bitcoin mining decentralized. Our understanding is that this is the fastest-ever initial deployment of hasrate at this scale in Bitcoin history. With hard work and a little luck, we hope Swan Mining will help to secure the network for many decades.”
Sometime in the next 12 months, Swan Bitcoin plans to complete a public listing. Currently, at $125 million in annualized revenue, Swan hopes to raise funds in a Series C round sometime this year. In an official announcement published in December, the company added that it raised and deployed $205 million worth of capital across its credit, equity, and hedge funds. The announcement specifies a plan to raise $150 million in expansion efforts.
Swan Institutional
Swan also announced Swan Institutional, a new unit set up for other services, including asset management, bitcoin-backed lending (Swan Lending), and advisor services. For Bitcoin-backed lending, the new unit will provide institutional investors with loans backed by Bitcoin. This service will extend to family offices and companies that need liquidity of up to $50 million. According to Swan Bitcoin’s Head of Institutional Sales, Jonathan Melton:
“Swan Lending offers a practical solution for institutions holding Bitcoin that don’t want to sell. We understand the long-term potential of Bitcoin and the importance of safeguarding collateral.”
Last September, Swan Bitcoin made the news when it partnered with crypto custodian BitGo Inc, to float a Bitcoin-only trust company. The plan is to offer customers some access to Bitcoin custody, without direct exposure to the Bitcoin market. With this company, BitGo and Swan Bitcoin hope to be at the forefront of Bitcoin adoption.
According to CoinMarketCap data, Bitcoin has again fallen below $40,000, trading at $39,916. The king coin has lost 3% in seven days, as it struggles to contain all of the recent updates in the sector, including the approval of spot ETFs.
