In the midst of the protracted crypto winter, the largest digital currency asset management in the world, Grayscale Investments, has announced the development of an investment vehicle that would aid investors in profiting from the lowered costs of bitcoin mining infrastructures.
On October 6, the asset management announced the formation of Grayscale Digital Infrastructure Opportunities LLC (“GDIO”), a private co-investment opportunity in Bitcoin mining technology.
Grayscale is using the operational expertise of Foundry, an affiliated digital asset mining and staking infrastructure provider, to handle GDIO’s day-to-day operations in the company’s newest product.
CEO of Grayscale, Michael Sonnenshein, stated: From direct digital asset exposure to varied theme products, and now infrastructure via GDIO, our team has always been dedicated to decreasing the barrier to participating in the crypto ecosystem.
Together with its sister company Foundry (also part of Digital Currency Group), the cryptocurrency company is launching a limited liability company (LLC) that will utilize the cash it receives from approved investors to acquire both new and used cryptocurrency mining equipment and to offer finance to current mining enterprises.
The decrease in Bitcoin’s value by more than half this year, coupled with increased energy costs and a lack of accessible capital, has cut the profit margins of miners.
This has had a direct influence on the price of Bitcoin mining gear, such as the highly specialized computers that were in such high demand during 2017’s bull run that they hit all-time highs.