Bitfury, a mining company founded in 2011, announced on May 26 a partnership program that allows institutions to invest in Bitcoin Mining (BTC).
The program will help family offices and other institutional funds diversify their portfolios in digital asset infrastructure. According to Bitfury, this was previously a difficult task for these investors.
Investments in data centers in North America and other unspecified regions will be possible through tailor-made investment solutions. This may include direct investments and private equity investments in joint ventures, although the company refused to elaborate on how the deals worked.
Bitfury will manage all aspects of operations, including location acquisition, equipment acquisition, and maintenance. The company claims to use the most modern mining equipment and has subsidiaries that develop cooling solutions and microchips for its mining facilities.
The data centers are located in Canada, Norway, Iceland and Central Asia and have access to electricity prices of “USD 0.03 per kWh and below”.
Indirect exposure to Bitcoin
By investing in Bitcoin mining companies, holding a stake in a traditional company gives institutions access to the cryptocurrency market without having to worry about cryptocurrency custody. The company’s assets will largely depend on the trend of the cryptocurrency market, while it still has clearly definable valuation metrics.
Institutional investors were already involved in the mining: Cointelegraph reported in April about an investment that was made in exchange for a promise of hash power.
The Chinese mining machine manufacturer Canaan offered an alternative way to invest in Bitcoin through its IPO or IPO on the Nasdaq. But the legal issues surrounding the IPO have probably made it less desirable. The share price lost just over a third of its original value at the end of 2019.
Last Bitfury moves
The mining company announced in March that it had started contributing to the COVID-19 investigation by using part of its GPU computing power for this effort.. The company also joined a forest protection measure in Kazakhstan in January.