Fabric Systems raised $13 Million in seed funding from investors like TeraWulf, a bitcoin miner, and Jaan Tallinn, co-founder of Skype’s fund Metaplanet. According to the startup, it’s developing a liquid cooling ASIC Bitcoin miner that can achieve energy efficiency of 20 W/TH. This is significantly lower than other models.
Fabric Systems, a bitcoin mining hardware startup, raised $13 million in seed round. This was to finance the development of two core products, including an ASIC machine that is liquid immersion-cooled. Fabric Systems claims it will achieve energy efficiency of 20 Watts per Terahash (watts/TH).
The company stated that investors include TeraWulf, a bitcoin miner, and Jaan Tallinn, Skype cofounder, who has funds Metaplanet, Blockchain.com, and 8090 Partners.
The company’s first product is an immersion cooling ASIC machine. This means that the machine is submerged in liquid and not cooled by traditional fans. Although this type of computer cooling technology is well-established, it has recently been used by companies such as Riot and Argo to cool large numbers of computers in Texas.
It is designed to be more efficient than any existing bitcoin miner on the market today in terms of energy efficiency. It has a 20-watt energy efficiency.
Luxor, a Bitcoin mining company, divides its machines into three efficiency levels. “Old generation” ASICs are over 68 J/TH, while “mid-generation” is 38-to-68 J/TH. “Latest generation” is under 38 J/TH. According to the firm, joules can be interchanged with watts.
Fabric Systems is expected to begin shipments in the third quarter of 2023 with the machine going into production in the second half of 2023.
The Block was told by Michael Gao, co-founder and CEO of The Block that the software and hardware products were “the culmination of years worth of R&D since 2019”.
Gao founded Luminous Computing before, a photonic AI supercomputing startup backed Bill Gates. It received over $130million in funding. At the age 15 he discovered bitcoin and started a bitcoin mining business from his bedroom. Fabric Systems’ chief technology officer Sagar Reddy is the other co-founder. He has 22 years of experience in technical leadership in full-custom chips design and systems architecture.
Jasper Lau, founder and CEO of 8090 Origin (a mutual fund spun out from 8090 Partners), stated that Fabric Systems was the reason they decided to invest in it.
Lau stated that Michael is a serial deep-tech entrepreneur who has a surprising far-reaching vision of the potential impact that breakthrough technology can have on society. We have supported him many times, and we are proud to be his partner again in Fabric Systems. Fabric Systems will be a market-defining company in cryptography acceleration’s >$100 billion market.