Crypto Hardware Maker Fabric Systems Raises $13M in Seed Funding

Skype co-founder Jaan Tallinn's Metaplanet was among the investors.

AccessTimeIconOct 13, 2022 at 4:08 p.m. UTC
Updated Oct 13, 2022 at 6:04 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Crypto hardware technology startup Fabric Systems has raised $13 million in seed equity funding, with the capital to be used to build two products – a liquid-cooled bitcoin miner and a computer processor for advanced cryptographic algorithms such as zero-knowledge proofs.

“Most of the funding is going to be used on the Bitcoin side,” Fabric co-founder Michael Gao told CoinDesk. “Some of the funding will be used for pilot experiments in the zero-knowledge-proof side.”

Participating in the round were Metaplanet - the investment vehicle of Skype co-founder Jaan Tallinn – Blockchain.com and 8090 Partners.

Fabric is seeking to attract crypto miners in a down market with a more efficient computer.

“Fabric’s Bitcoin miner will set a new standard for the industry in terms of energy efficiency, cost and form factor,” the company said in a statement. “Beyond its extremely energy efficient Bitcoin mining chips, it will be the first out-of-the-box immersion cooled machine."

Gao expects the machines will be in full production and mining at customers' facilities by the end of the next year.

Making bitcoin mining chips, however, is no easy task as the market is mostly controlled by large manufacturers like Bitmain and MicroBT. While there have been many false promises of competition, there have been some recent successes. Intel (INTC), for instance, has entered the bitcoin mining market, to help provide miners with more efficient and environmentally friendly mining chips to compete with the incumbents.

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets