Grayscale launches Bitcoin mining investment vehicle
Bloomberg • November 08, 2022
The world's largest crypto asset manager, Grayscale Investments, is launching a fund linked to crypto miners - companies that use computer power to calculate mathematical formulas for the benefit of the Bitcoin system and receive newly minted Bitcoins as a reward.
The fund will be set up in the new entity Grayscale Digital Infrastructure Opportunities LLC (GDIO) and the mining will be operated by Foundry Digital, a miner that currently holds the largest Bitcoin mining pool in the world. Investors can get in from $25,000 and their dividends will be paid out directly in Bitcoins.
CEO Michael Sonnenshein explains the initiative as follows: "Grayscale's unique position at the centre of the crypto ecosystem enables us to create offerings that allow investors to put capital to work through differing market cycles".
For investors who want direct exposure to the consensus layer of blockchain networks, this is indeed a new opportunity. The timing is better than it was last year because of the prices of specialized computers needed for Bitcoin mining have dropped substantially since the start of this year's 'bear market'.