Mining hardware startup raises $13 million as it develops new liquid-cooled ASIC

Quick Take

  • Fabric Systems has raised $13 million in a seed round from investors such as bitcoin miner TeraWulf and Skype co-founder Jaan Tallinn’s fund Metaplanet.
  • The startup claims that it is developing a liquid cooling ASIC bitcoin miner that will achieve an energy efficiency of 20 watts/TH — significantly lower than most models currently available.

Bitcoin mining hardware startup Fabric Systems raised $13 million in a seed round to fund the development of two core launch products including a liquid immersion-cooled ASIC machine it claims will achieve an energy efficiency of 20 watts per terahash (watts/TH).

Investors include bitcoin miner TeraWulf, Skype co-founder Jaan Tallinn's fund Metaplanet, Blockchain.com and 8090 Partners, the company said.

For now, the company's launch product is an immersion-cooling ASIC machine — meaning that it is submerged in a special liquid instead of being cooled via air with traditional fans. This type of computer cooling technology has been around for decades, but more recently the industry has seen companies like Argo and Riot deploy them at large scale in Texas.

It promises to "outperform every existing bitcoin miner in today’s existing marketplace" in terms of energy efficiency and is engineered to achieve an energy efficiency of 20 watts/TH.

For comparison, Bitcoin mining firm Luxor divides machines into three efficiency tiers: "Old-generation" ASICs are classified as over 68 J/TH, "mid-generation" as 38-to-68 J/TH and "latest generation" as under 38 J/TH. The measure of joules is interchangeable with watts, the firm clarifies.

Fabric Systems's machine is supposed to go into production in the latter half of 2023, with shipments starting in the third quarter.