KnCMiner Announces New Funding Round and 16 nm Chip

KnC has maintained a partnership with Alchip spanning years, including on the Neptune, a SHA256 processor KnC sold as a solution for individual miners. Alchip, which has manufactured integrated circuits since 2003, has worked on Bitcoin mining chips from the sector's beginning. Beyond ASICs, Alchip produces other system-on-chip products, but the company now focuses on ASICs.

KnC has moved toward cloud mining operations since the Neptune era, but the company's need for cutting-edge hardware remains constant.

KnC spent over $70 million on mining operations in the past 12 months. The company pledged to invest an additional $150 million in mining infrastructure over the next 18 months. Since its start, KnC has brought in more than $100 million in revenue.

Late in 2014, KnC teased the 16-nanometer chip under the codename "Solar," citing power efficiency gains. The company claimed the design would deliver 10 times the hashing output at the same power draw. KnC included no technical specifications or final name in this week's press release.

CoinTerra announced a pre-sale for a 16-nanometer rival and then filed for bankruptcy. Bitcoin's price collapse in recent weeks has shaken the mining industry. Companies have liquidated or made drastic changes to stay operational. CEX.io stopped mining hardware sales and told an interviewer that Bitcoin would need to sit at $230 per coin for mining to be profitable. The price currently hovers near that threshold.

Mining companies have one option for surviving Bitcoin's volatility: cut power consumption while raising processing power. KnC's new design handles both. Whether the chip ships on time and performs as promised will determine whether the company survives the downturn.