Grayscale plans to purchase mining equipment at discounted prices and offer co-investment opportunities for accredited investors.
Grayscale Investments announced on October 6 the creation of Grayscale Digital Infrastructure Opportunities LLC (“GDIO”), a joint investment opportunity focused on Bitcoin mining hardware. Leveraging its affiliated staking infrastructure company, Foundry, the company plans to acquire mining equipment at discounted prices amid the current bear market.
The company said that the new entity will be available to individuals and accredited institutional investors with a minimum investment of USD 25,000. The financing is expected to be completed before the end of this year and will offer similar liquidity to private equity or infrastructure assets that have an investment horizon of three to five years, as reported by Bloomberg. Investors who are considered accredited must meet certain criteria relating to their income, net worth, qualifications and knowledge of the financial markets.
- Bitcoin Miners Profitability Threatened as Hash Rate Hits New All-Time High
“Our team has long been committed to lowering the barrier to investing in the crypto ecosystem, from direct exposure to digital assets to diversified themed products, and now infrastructure through GDIO,” Grayscale CEO Michael Sonnenshein said in a press release.
Foundry operates one of the largest mining pools in the world, Foundry USA, under the same parent company as Grayscale, the Digital Currency Group. Last year, Foundry USA became the second largest Bitcoin mining pool following China’s ban on cryptocurrency trading and mining activities.
Recently, more companies have looked for consolidation opportunities amid a bear market and high energy costs. In September, cryptocurrency mining company CleanSpark announced a deal to acquire Mawson’s Bitcoin mining facility in Sandersville, Georgia for $33 million.
- El Salvador Geothermal Plant could enable bitcoin mining for outside investors
Days earlier, the company revealed a purchase agreement with Cryptech Solutions for 10,000 Bitmain Antminer S19j Pro rigs for a total price of $28 million. In July, Clean Spark purchased more than 1,000 Whatsminer M30S miners at a “substantially discounted price.” In June, the mining company also purchased 1,800 Antminer S19 XP rigs.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
- Bitcoin Miners Profitability Threatened as Hash Rate Hits New All-Time High
- El Salvador Geothermal Plant could enable bitcoin mining for outside investors
- Grayscale: Crypto Winter Has 250 Days Left If Market Cycle Repeats
- GBTC premium hits record low of -34%
- You can now invest in Grayscale’s GBTC and ETHE products through Robinhood
- Sushi and Synthetix are removed from the Grayscale DeFi Fund
- Canadian Central Bank Identifies Retail CBDC Archetypes in Highly Theoretical Analysis