The Geniuses at Work Corporation, the parent company of bitcoin mining hardware specialist GAW Miners, has acquired a controlling stake in cloud mining provider ZenMiner for $8m.
GAW Miners had originally announced a partnership deal with ZenMiner earlier this month. At the time, ZenMiner agreed to provide cloud hashing services as part of a broader strategic partnership.
In the latest deal, GAW Corp. acquired a controlling stake in the cloud hosting company. GAW CEO Josh Garza told CoinDesk, the stake purchase follows a period of close collaboration between the two companies, and that the development also reflects the growing role of hardware hosting in bitcoin mining company business models.
As Garza explained, the deal will allow GAW customers to either receive their miners through the mail or immediately begin hashing through the hosting service. By bridging the connection between hardware seller and hosting service, miners can generate revenue more quickly, he said.
Garza explained that the deal’s main benefit is that it puts more power in the hands of hardware-buying customers, saying:
“I just want to help miners make some money, help get them some return on investment (ROI). I’m just so tired of manufacturers milking miners for all the money they can.”
The GAW CEO added that the ZenMiner deal is part of Project Prime, a broader effort to bring resources and information to the mining community and industry. The project notably includes the purchase of the BTC.com domain name last month for a record $1m.
Hosting as a value solution
As Garza explained, the ZenMiner deal reflects a potential solution to a growing problem for bitcoin miners: the rapid depreciation of their hardware.
Currently, Garza argued, the developmental arc of mining hardware puts buyers who expect speedy deliveries at an advantage, especially if they have to wait months before their package arrives.
With the ZenMiner hardware hosting solution, miners can choose whether they want to begin hashing immediately or wait to receive their equipment. According to Garza, control of the hardware ultimately rests with the customer.
Garza said:
“You still own it, it’s your equipment. At any given time, you can give us a call, click a button and we’ll send it to you.”
The partnership between GAW Miners and ZenMiner has been mutually beneficial, Garza suggested, making the decision to acquire a controlling stake at the holding company level a no-brainer.
He concluded by saying that, ultimately, the deal “allows us to work more closely together”.
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