Grayscale introduces a Bitcoin mining investment vehicle that distributes dividends from mined BTC.
The largest digital currency asset management in the world, Grayscale Investments, stated it is creating an investment vehicle to help investors take advantage of the falling cost of bitcoin mining infrastructures in the midst of a protracted crypto winter.
On October 6, the asset management announced the establishment of Grayscale Digital Infrastructure Opportunities LLC (“GDIO”), a private co-investment opportunity in the Bitcoin mining technology (BTC).
In specifically, Grayscale is using Foundry, a connected supplier of infrastructure for mining and staking digital assets, to handle day-to-day operations for GDIO in the business’s most recent offering.
According to Grayscale CEO Michael Sonnenshein:
“Grayscale’s unique position at the center of the crypto ecosystem enables us to create offerings that allow investors to put capital to work through differing market cycles”
Further on:
“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 now infrastructure through GDIO.”
Bitcoin mined is given to investors
The cryptocurrency firm is establishing a limited liability company (LLC) with Foundry, a sister company that is also a part of the Digital Currency Group, to use the money it raises from accredited investors to buy both new and used cryptocurrency mining equipment as well as to finance current mining operations.
“Any equipment the new enterprise obtains will be set to mine Bitcoin as part of Foundry’s USA pool, the world’s largest. In return, earned Bitcoin would be distributed to investors as a cash dividend,” Sonnenshein told Yahoo Finance.”
Bitcoin’s value has dropped by more than half this year, and this, along with increased energy costs and a lack of funding, has made mining difficult for miners.
The price of Bitcoin mining equipment, such as the highly specialized computers that were in such high demand during the bull run last year that they hit record highs, has been directly influenced by this.
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