Alameda Bet Big on Crypto Miner Genesis Before Sector Implosion
- Venture arm invested $1.15 billion in total in Genesis Digital
- Investments occurred before mining industry fell into distress
Mining rigs inside the Genesis Farming site near Reykjavik.
Photographer: Halldor Kolbeins/AFP/Getty Images
This article is for subscribers only.
One of the bigger questions surrounding the collapse of Sam Bankman-Fried’s crypto empire is what venture investments his trading firm Alameda Research poured billions of dollars in.
A company document indicates that his largest bet was on the Bitcoin mining company Genesis Digital Assets during the height of the crypto gold rush. Alameda continued to pour money into the firm even as the price of Bitcoin tumbled and soaring energy costs wreaked havoc across the industry.