In a statement released on January 25, 2024, Swan Bitcoin, the Bitcoin-only financial services company announced its stealth Bitcoin mining arm that commenced operations last summer and has now mined over 750 BTC at a capacity of 4.5 exahashes (EH) per second.
In the announcement, the company confirmed that its mining arm, unsurprising named Swan Mining, had been in stealth mode since summer 2023. Swan Bitcoin plans to become a division of Swan Institutional as it works to improve mining capacity this year.
In the same statement, Cory Klippsten, Swan Bitcoin’s CEO, iterated that the Bitcoin-focused crypto exchange is actively working to secure a public listing within a year, following massive growth and dramatic expansion in the preceding year.
What is Swan Bitcoin?
Swan Bitcoin is primarily a financial services firm that lets users save in Bitcoin. The company started with the vision that Bitcoin will become increasingly valuable and, as a result, is the best savings vehicle out there. However, it has quickly expanded that vision, dipping its toes into other Bitcoin-related services.
With arms like Swan Vault, Swan Advisor, Swan IRA, and now Swan Mining, the company offers services ranging from a Bitcoin wallet to full-on Bitcoin mining. The expansion into Bitcoin mining with its new Swan Mining arm is hardly surprising, as the firm appears to be dipping its toes into everything related to Bitcoin, especially with its explosive success last year.
Why Swan Bitcoin Launched in Stealth Mode
While commenting on the new development, Raphael Zagury, Swan Bitcoin’s Chief Investment Officer, described the deployment as “the fastest-ever initial deployment of the hash rate at this scale in Bitcoin history.” Zagury is also the new head of Swan Mining, its mining arm.
On why the project had to launch in stealth mode, the CIO explained that the move aimed to minimize disruption in ASIC pricing to maintain collaboration with certain operators in the Bitcoin mining space. Understandably, the resulting high demand for mining rigs from Swan Bitcoin could suddenly jack up prices if publicized immediately. A move like that could be seen as market manipulation, impacting its ability to form crucial partnerships with other firms in the Bitcoin mining sector.
Swan Bitcoin-“1 in 100 Bitcoins mined by Swan”
According to its recent announcement, Swan Bitcoin is reportedly closing in on 1% of the entire Bitcoin mining network, with a current hash rate of around 4.5 EH. Also, the firm expects to close in on 8 EH by March based on the equipment it has on hand for mining.
Securing 1% of the Bitcoin mining network is a big deal for any mining firm, the company admits in its press statement. With its current mining power, Swan Mining mines 1 of every 100 Bitcoins mined globally, a mind-boggling number for a mining operation that operated unknown for the whole of last year. The 1% number should grow in the coming months, as the company claims to have taken delivery of mining equipment to increase its hash rate to 8 EH, nearly twice its current value.
The company said, “The unit has purchased and taken delivery of mining equipment that will bring its total capacity to more than 8 exahash, expecting full deployment by March. Swan has mined more than 750 Bitcoins.”
Swan Bitcoin Seeks an IPO in 12 Months
In the statement announcing the addition of a Bitcoin mining unit, Cory Klippsten, Swan Bitcoin’s CEO, unveiled plans to take the Bitcoin-focused financial services firm public in the next 12 months, citing its explosive successes in 2023 as a justification for his plan.
“Swan expanded dramatically over the past year, doubling team size and growing revenue to more than $125M annualized,” the statement revealed, wooing investors to the upcoming Series C funding round that should take place in the coming months.
Swan Bitcoin aims to split the capital from its upcoming Series C financing equally among its mining, acquisitions, and financial services arms to catapult its growth and position it for its initial public offering (IPO), the long-term goal.
