Squire Mining is moving to establish itself as a new contender in the crypto mining hardware business. The Canada-based company has completed a CAD 25.5 million non-brokered private placement, equivalent to about USD 19.5 million, to fund the design, development, testing, and pilot mass-production run of a next-generation ASIC chip and bitcoin mining rig. The company said it aims to complete manufacturing and assembly of its initial pilot run by the end of the fourth quarter of 2018.
Funding focused on next-generation ASIC development
Squire Mining, previously known as an investment company focused on resource exploration and technology projects, is now repositioning itself toward the crypto sector. According to the company, the proceeds will support not only the first-generation ASIC chip and mining rig, but also further research and development for second-generation products, along with marketing, promotion, and distribution.
Under a partnership agreement signed in March with design and systems engineering architect Peter Kim, the initial products are expected to use 10nm ASIC chips. The joint venture will be based in South Korea, with Squire holding an initial 66 2/3% stake and Kim holding 33 1/3%. That entity will oversee the design, development, and commercialization of the specialized hardware.
Beyond hardware sales
Squire’s ambitions extend beyond selling mining rigs. Once ASIC development is completed, the venture is also expected to handle sales of bitcoin and other crypto-mining systems while working to build the company’s own mining facilities. This suggests a broader strategy spanning chip design, hardware commercialization, and direct mining operations.
Competition in mining hardware is expanding
The company’s move comes in a market still heavily dominated by Bitmain. Squire noted that next-generation chip design and system architecture have become foundational to the growth of the crypto industry, and new entrants could increase competition in the sector. The report states that Bitmain controls roughly 80% of the market and posted profits of more than $3 billion in 2017.
At the same time, the mining hardware space is attracting more participants. Bitmain has been broadening its own product lineup, while Canaan Creative, Samsung, and Japan’s GMO have also been expanding their presence in mining chips and rigs. As more companies target performance gains through advanced ASIC designs, competition around efficiency, manufacturing process, and product diversification is likely to intensify.