Grayscale, a crypto asset management company, has announced the introduction of Grayscale Digital Infrastructure Opportunities (GDIO), a private co-investment opportunity in the mining hardware that drives the Bitcoin ecosystem. The new investment product centred on Bitcoin mining hardware attempts to “capture the upside of crypto winter” by leveraging the decline in cryptocurrency prices.
Grayscale and Foundry, both of which are subsidiaries of Digital Currency Group (DCG), are forming a limited liability company to drive the mission. The company will use money from accredited investors to finance mining operations and purchase both new and used Bitcoin hardware. The startup’s mining hardware will in use in Foundry’s USA pool, the largest such operation in the world. In exchange, investors will get Bitcoin dividend payments.
How will Grayscale’s BTC mining product work?
Target investors include institutional investors like pension and endowment funds, as well as high net-worth individuals and family offices, whose mandates prohibit them from making direct cryptocurrency investments. It’s not uncommon to find excellent upside opportunities during bear markets. The crypto industry’s woes haven’t stopped some players from taking the plunge and investing in it.
Even though many people have invested in Bitcoin and other cryptocurrencies, it’s not easy for the average investor to find, buy, and run the mining equipment necessary to turn a profit. GDIO plans to utilize the funds it raises to buy mining gear in the months ahead when they will presumably be on sale at steep discounts. However, Grayscale will be hoping that the market turnaround will happen after it has acquired all the machines it needs.
However, Grayscale will not manage GDIO directly. he new company will be managed on a day-to-day basis by Foundry, which already manages Foundry USA, one of the largest mining pools. Due to the persistently low Bitcoin price, several miners may sell off their rigs in the coming months. In addition, numerous asset management firms have compelling arguments to begin purchasing the equipment due to widespread signals of market consolidation.