Grayscale announces new investment product in bitcoin mining hardware
Grayscale plans to acquire Bitcoin mining equipment and provide co-investment opportunities for accredited clients.
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On October 6, Grayscale Investments announced the launch of Grayscale Digital Infrastructure Opportunities LLC (GDIO), a co-investment channel in Bitcoin mining hardware. By leveraging staking infrastructure company Foundry, Grayscale will be collecting mining equipment to bring out the positives of the current crypto winter.
The funding is expected to complete before the end of the year and provide liquidity similar to private equity or investment infrastructure in three to five years. Through GDIO, the company will mine and sell Bitcoins on a daily basis and distribute a portion of the earnings to investors quarterly.
New product for accredited individual and institutional clients with a minimum investment of $25,000, proven income, qualifications and understanding of the financial markets.
Grayscale CEO Michael Sonnenshein said in a statement:
“Our team has long been committed to lowering the barriers to investing in the crypto ecosystem – from direct exposure to digital assets, to diverse investment products and now a platform for investment. infrastructure through GDIO. GDIO will use the invested capital to buy back mining equipment, providing liquidity for the mining ecosystem, and this is a good time to buy to optimize future profits.”
Grayscale is managing $17.6 billion in assets. Foundry operates one of the largest mining pools in the world, Foundry USA, under the same parent company as Grayscale, Digital Currency Group. Last year, Foundry USA became the second largest Bitcoin mining pool after China's ban on crypto trading and mining.
Although the crypto winter is still raging, many big players still see this as a golden time to increase their influence in the industry. CleanSpark is the name that has continuously closed deals on thousands of miners over the past time. For example, the purchase of Mawson's Bitcoin mining facility in Sandersville, Georgia worth $33 million, to the deal of 10,000 Bitmain Antminer S19j Pro worth $28 million and more than 1,000 Bitcoin miners from Whatsminer M30S for "price" significant discount” in July…
Last month, crypto billionaire Jihan Wu – founder of Bitmain – set up a $250 million fund to bail out struggling miners. Additionally, Maple Finance is also launching a $300 million lending pool for mid-sized Bitcoin miners across North America and Australia.
Oct 07, 2022