BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Uncategorized

Grayscale To Set Up A Bitcoin Mining Arm – What Does It Mean For The Crypto Industry?

BlockNews Team by BlockNews Team
October 10, 2022
in Uncategorized
Reading Time: 3 mins read
A A
Greyscale-Bitcoin-Mining
1
SHARES
10
VIEWS
Share on TwitterShare on Reddit

Grayscale Investment is set to establish a Bitcoin mining arm and buy equipment at offer prices. According to an October 6 announcement, the move will help the company to provide co-investment opportunities to accredited investors.

You might also like

HeartX Launches Web3 Marketplace and Community Aims to Revolutionize the Digital Arts Industry

Around The Block – FEB 24 Week in News

Canadian Regulators Introduce Stringent Regulations for Stablecoin Platforms

The Bitcoin mining arm, coined “Grayscale Digital Infrastructure Opportunities LLC” (“GDIO”), will operate as a co-investment opportunity offering Bitcoin mining hardware. GDIO will also power the Bitcoin mining ecosystem.

According to Grayscale’s head of investor relations, Rayhaneh Sharif-Askary, the mining equipment will be acquired at discounted prices. He said:

“GDIO will then deploy this equipment to mine bitcoin, sell bitcoin daily, and distribute cash generated to investors, generating income.”

With this new product, Grayscale is looking to fill a gap in the market.
“While many people have exposure to cryptocurrencies themselves, it’s significantly more difficult for the everyday investor to source, store, and operate mining equipment to generate a profit mining bitcoin.”

According to Rayhaneh, the Foundry staking infrastructure firm will manage the day-to-day operations. Foundry runs Foundry USA, one of the biggest mining pools globally, under the same umbrella company as Grayscale, the Digital Currency Group. They partnered with Grayscale on a joint mission to expand the ability to invest in Bitcoin mining. Foundry CEO Michael Colyer said:

“As part of Foundry’s mission to empower a decentralized infrastructure, we’re excited to partner with Grayscale to broaden the ability to invest in bitcoin mining during this opportune time.”

In 2021, following China’s decision to ban crypto trading and mining activities in the country, Foundry USA quickly ascended to become the first runners up in the list of largest Bitcoin mining pools worldwide.

Criteria for Onboarding as a Co-Investor

The new organization will be available to eligible individuals and accredited institutional investors at a threshold investment of at least $25,000. Criteria for onboarding are that accredited investors must attain a specific bar in terms of income, net worth, qualifications, and knowledge of financial markets.

According to a Bloomberg report, the funding is expected to finalize by the end of 2022. It will emulate private equity or infrastructure assets with a 3-5 year investment horizon in offering liquidity. Grayscale CEO Michael Sonnenshein weighed in on the developments during a press statement saying:

“Our team has long been committed to lowering the barrier for investing in the crypto ecosystem — from direct digital asset exposure to diversified thematic products and infrastructure through GDIO.”

With Grayscale looking to leverage the slump in cryptocurrency prices, the firm’s decision to set up a new investment product focused on Bitcoin mining hardware is indeed tactical. The new development will help Grayscale Investment capture the upside of crypto winter.

Firms Looking for Consolidation Opportunities

Amid the bear market and increased energy costs, more firms continue to seek consolidation opportunities in the Bitcoin mining space. This which makes Grayscale’s vision for a BTC mining arm very timely.

Several firms have made groundbreaking steps to leverage prevailing market conditions and rake thousands of mining machines at throwaway prices. One firm whose actions have stood out is CleanSpark crypto mining firm.

In September, CleanSpark disclosed a signed contract to acquire Mawson’s Bitcoin mining facility in Sandersville, Georgia. According to the agreement, the acquisition would cost $33 million. A week before that announcement, CleanSpark also published a purchase deal with Cryptech Solutions, paying $28 million to acquire Cryptech’s 10,000 Bitmain Antminer S19j Pro units.

Moreover, CleanSpark also has a history of buying more than 1,000 Bitcoin miners from Whatsminer M30S at an enticing price, just one month after the mining company took possession of 1,800 Antminer S19 XP rigs.

Tags: BitcoincryptoCrypto Mininggreyscale
TweetShareShare

Recommended For You

HeartX Launches Web3 Marketplace and Community Aims to Revolutionize the Digital Arts Industry

by BlockNews Team
March 21, 2023
0
heartx marketplace

The platform enables artists, collectors, and consultants to create, share, and trade digital artworks in a secure and transparent space. The HeartX marketplace will be launched in both...

Read more

Around The Block – FEB 24 Week in News

by BlockNews Team
February 24, 2023
0
Around the Block

Introduction In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of February 20th....

Read more

Canadian Regulators Introduce Stringent Regulations for Stablecoin Platforms

by BlockNews Team
February 23, 2023
0
Canadian Regulators Introduce Stringent Regulations for Stablecoin Platforms

Stablecoin firms without written consent from the CSA will be banned from operating in Canada. The CSA has stated that algorithm stablecoins and stablecoins with low liquidity will...

Read more

Hong Kong issues 800M HKD in Tokenized Green Bonds

by BlockNews Team
February 18, 2023
0
hong kong tokenized bond

The Hong Kong government has successfully raised $102 million through the sale of digital green bonds, making it the first government to issue a tokenized green bond. The...

Read more

How Blockchain Technology Will Change Leadership?

by BlockNews Team
November 14, 2022
0
Blockchain

Blockchain Technology & Leadership Blockchain technology enables new levels of transparency and collaboration that revolutionize strategy and operations by offering a decentralized, secure means to store and handle...

Read more
Next Post
Bitcoin-Halving

Progress Toward Bitcoin's Halving Is 60% Complete, Block Times Suggest Reduction Could Happen Next Year

Related News

Google-Crypto-Addresses

Crypto Addresses are Now Searchable on Google

October 11, 2022
Patriot-Logo

Web3 Firm Chain Inks Becomes Official Sponsor for New England Patriots

September 26, 2022
Bitcoin

Ordinals NFT Transactions Yield Almost $600K in Profits for Bitcoin Miners

February 15, 2023

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Crypto Exchange GMX Proposes Deployment to Coinbase Blockchain March 22, 2023
  • Bitcoin Price Prediction: BTC Back Below $28K As US Banking Crisis Escalates March 22, 2023
  • Crypto Flourishes in Vietnam with 16.6 million Holders March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?