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Mawson Infrastructure Group (OTCQB: MIGI) adds to its already impressive mining capabilities with the purchase of additional mining units. The company acquired 17,352 Application-Specific Integrated Circuits, or ASICs, from Mawson’s long-time partner Canaan Inc. (NASDAQ: CAN), a leading manufacturer of the mining units. The Avalon purchase was made up primarily of A1166s and A1246s, Canaan’s next-generation models.
Rise of the ASIC
In the early days of Bitcoin, miners could use their central processing units (CPUs) to compete in the market. As more people joined the network and competition rose, CPU mining quickly became unprofitable and was replaced by graphics processing unit (GPU) mining.
Then came the rise of the ASIC or application-specific integrated circuit. Whereas CPUs and GPUs are designed for general use across a variety of applications, ASICs are designed to do one thing extremely well.
The total hash rate — in simple terms, a measure of a device’s mining power — is measured in Hashes per Second (H/s). The Avalon A1166 boasts a hash rate of 81 Tera Hashes per second. That is more than 1,000 times as powerful as an average GPU today.
This power makes ASICs incredibly sought after, leading to a global shortage. The low inventory means that manufacturers prefer to deal first with companies able to make purchases on the scale of Mawson’s recent purchase. That means Mawson will continue to have equipment at the cutting edge of technology.