Bitcoin mining hardware firm Spondoolies-Tech is partnering with Bermuda-based Genesis Mining on a new cloud mining offering.
According to the two companies, Spondoolies will provide the hardware to back the virtual contracts sold, while Genesis will operate the machines out of their existing data centers. New hardware shipments from Spondoolies’ facilities for the cloud mining service will be conditional on demand from customers.
Both expressed positivity about the initiative, and detailed how the firms have been searching for ways to work together since the summer of last year.
“We’ve looked for a way to do a deeper partnership on several levels,” Corem told CoinDesk, suggesting that the cloud offering is the first step in what will likely become a stronger link between the two companies.
According to Corem, Spondoolies will ship equipment to Genesis-run facilities to meet contract demand, with Genesis using existing hardware to cover hash-rate needs during the shipping period. He explained that the model is an evolution of a previously offered service by which the company hosted hardware at its Israel-based facility, but that rising energy costs have required a shift in strategy.
Corem characterized the cloud offering as “a new product” tied directly to demand from customers, rather than relying on a model that involves the operation of a bitcoin mining facility and the sale of contracts tied to that mine’s performance, or the use of third-party mines that produce hashing power.
“Our motto and guiding [principle] is to not compete with our customers," he said.
Streng explained how the partnership grew out of an existing relationship between the two companies, and noted that the cloud project was a natural fit for the two firms.
"We are really happy to support and to do this joint project together with Spondoolies," he told CoinDesk.
Streng added that the partnership is important, given the environment for businesses in the mining space and the prevalence of fraudulent or disingenuous firms offering similar services.
Corem echoed this sentiment, saying that a mutual respect exists between the two companies that gave rise to the partnership today.
“We respect Genesis Mining, we understand their business, and I even consider the three founders friends," he said. "So I know that we are in a very good partnership.”
Images via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.