Crypto Startup Fabric Systems Raises $13M Seed Round to Provide Blockchain Hardware
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.
It's no secret that the bear market hasn’t been kind to the bitcoin miners. Coming out of the downturn, miners will likely require the most efficient form of computers that can mine for crypto, and that’s where Fabric’s new product might fit.
Read more: Bitcoin Mining Difficulty Surges to All-Time High, Putting Additional Squeeze on Miners
“Fabric’s Bitcoin miner will set a new standard for the industry in terms of energy efficiency, cost, and form factor,” according to a statement. “Beyond its extremely energy efficient Bitcoin mining chips, it will be the first out-of-the-box immersion cooled machine."
Read more: Cryptocurrency Miners Turn to Exotic Cooling Systems as Competition Heats Up
Gao expects his machines to be in full production and mining at customers' facilities by the end of the next year.
However, bitcoin mining chip making 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, for instance, has entered the bitcoin mining market, to help provide miners with more efficient and ESG friendly mining chips to compete with the incumbents.