the bear market, has eroded the price of bitcoin (BTC) by more than 70%, against its ATH. Several companies in the sector are facing serious financial difficulties. Others have already shut down. Among these are many companies in mining. Revenues from this segment have already plunged by more than 50% in 2021. This situation, combined with the rise in energy prices, has greatly affected the cash flow of companies in the mining. The difficulties also caused a record drop in equipment pricess necessary for the activity. In anticipation of the looming bull market, Grayscale and Foundry see this as an opportunity to boost earnings. Decryption.
Helping Investors Take Advantage of Bitcoin (BTC) Mining Opportunities
Grayscale, the world’s largest crypto asset manager, comes of anotutter an association with the infrastructure company of mining bitcoin (BTC), Foundry Digital. An association that takes the form of a joint venture, called Grayscale Digital Infrastructure Opportunities (GDIO).
This launched a financial product that will offer investors greater exposure to the segment of the mining. Indeed, the joint venture wants to take advantage of the weakness prices of ASIC machines to position themselves on the mining. It will raise money from investors to buy ASIC machines that have become affordable due to weak demand. Foundry Digital will use the hardware to then mine the flagship crypto.
By betting on high bitcoin (BTC) prices, cryptos will be traded and proceeds from the sale will be distributed to investors. This, on a quarterly basis. Investing is open to accredited entities and requires a minimum stake of $25,000.
“After talking with Mike Colyer [PDG de Foundry ? Ndlr] and the Foundry team about the bear market, we agreed there was an opportunity to connect investors directly with crypto mining”said Michael Sonnenshein, CEO of the crypto manager.
With the price of ASIC machines collapsing, even the biggest manufacturers, like Bitmain, are offering discounts on their devices. In addition to GDIO, other players want to seize the opportunity offered by the poor health of the segment of the mining of cryptos. Recently, Maple Finance launched a $300 million loan pool for mid-sized bitcoin miners in North America and Australia.
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