Amid a prolonged crypto winter, the world’s biggest digital currency asset manager, Grayscale Investments, announced it is launching an investment vehicle that would assist investors in capitalizing on the reduced prices of bitcoin mining infrastructures.
The asset manager announced the launch of Grayscale Digital Infrastructure Opportunities LLC (“GDIO”) on October 6, a private co-investment opportunity in mining technology that underpins Bitcoin (BTC).
In particular, Grayscale is employing the operational skills of Foundry, an associated digital asset mining and staking infrastructure provider, to operate GDIO’s day-to-day operations in the firm’s newest offering.
Grayscale CEO Michael Sonnenshein stated:
“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,”
“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.”
Mined Bitcoin distributed to investors
Together with its sister company Foundry (also part of Digital Currency Group), the cryptocurrency firm is forming a limited liability company (LLC) that will use the funds it raises from accredited investors to purchase both new and used cryptocurrency mining equipment, as well as to provide financing to existing mining businesses.
“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.
Miners have had a tough crypto winter, as the decline in Bitcoin’s value by more than half this year, with rising energy costs and a lack of available funding, has slashed their profit margins.