The investment in mining software and services company Titan will contribute to diversifying the current China-centric mining industry
In the latest addition to the mining industry diversification initiatives, Coinbase Ventures, the investment arm of San-Francisco based cryptocurrency exchange, has invested an undisclosed amount into Titan, a firm focused on developing software and services targeted at industrial Bitcoin (BTC) mining. The strategic investment by Coinbase will contribute to Titan’s current seed fundraising round.
In an announcement released yesterday, Titan explained that the investment will enable the company to continue advancing Bitcoin mining at scale by developing products that improve the efficiency and profitability of Bitcoin mining companies.
“The investment from Coinbase Ventures serves as a powerful endorsement of the Titan team, roadmap and vision”, explained Ryan Condron, co-founder and CEO of Titan. He added that “mining has advanced from hobby to industry, to critical global computing infrastructure, and Titan is prepared to help world-class miners meet these challenges”.
The company offers an advanced pool and mining software targeted at the professional United States-based Bitcoin miners. Titan states that its network of nodes and mining dashboards have been instrumental in allowing miners to better compete on a global scale.
Last month, Titan collaborated with CoinMint and CoreScientific, two major mining infrastructure providers in the US to launch Titan Pool–a one-of its kind enterprise-ready mining pool positioned for the challenges and opportunities of the modern cryptocurrency industry.
China, with its attractive electricity costs and a localised supply chain, dominates the current Bitcoin mining industry. The country’s Sichuan region is particularly attractive due to access to cheap hydroelectric power. The region’s importance is so pronounced that local seasons have a strong effect on Bitcoin’s hash rate.
The mining supply chain sees a much stronger influence of Chinese companies. Mining hardware manufacturers being almost exclusively based in China not only gives the local miners a powerful advantage but also ensures that the US-based miners still use mining devices manufactured in China. This has become an issue in the current geopolitical environment where the US government is actively banning Chinese-made products and services.
Titan is working towards the software side of the mining supply chain with its national pool and other products. However, diversifying the mining industry away from China’s dominance cannot be achieved without ASIC manufacturers from other countries stepping in.