Grayscale Investments has made an announcement in regards to launching a new subsidiary that is to focus on the crypto mining segment.
The responsibility of the particular subsidiary would be to invest in mining opportunities that involved Bitcoin and mining hardware.
Mining Investment Subsidiary
On October 6, Grayscale made the announcement about launching a new subsidiary that would be dedicated to creating and investing in digital infrastructure opportunities.
The name of the new subsidiary has been founded based on the segment it would target. The main purpose of the subsidiary would be to invest in mining hardware for Bitcoin.
According to the officials at Grayscale, they will be using the crypto winter to their benefit as they purchase Bitcoin mining hardware.
The condition of the overall crypto market is facing a cold time, which means there is not much potential in the industry. With cryptocurrencies becoming the least profitable, not many investors continue mining as it becomes a less profitable gig.
With the mining demand going down, the demand for mining hardware declines as well. This is where Grayscale comes in with its new subsidiary that would be responsible for buying new crypto-mining hardware.
The hardware would come cheap as the market trends are in their favor. The company is now aiming to add a vast number of cryptocurrency mining rigs and it plans on doing it in affiliation with Foundry, an affiliated staking infrastructure firm.
At a time when the crypto market is down, companies have the opportunity of buying them at cheap rates.
Opportunity to Invest
Grayscale Investments has announced that the institutional and institutional investors would be able to partake in the investment. They would have the opportunity to become part of the mining investments by investing a minimum of $25,000.
The participants wanting to contribute to the funding round for the new subsidiary would be able to do it by the end of the year.
Once launched, the aim of the project is to offer similar infrastructure or private equity assets that would make up for liquidity. The aim is to make long-term investments in the company.
The contracts that the investors would get to sign with the company would be for 3 years to 5 years.
Criteria for Accreditation
For the investors to be accredited with access to the service must meet certain eligibility criteria. These criteria include qualifications, net worth, income, and financial markets knowledge.
The company has already initiated an agreement that would see 10,000 Bitmain Antminer S19j Pro units delivered to the subsidiary by Cryptech Solutions. The final value of the deal would be somewhere around $28 million.
With the mining rigs, the targets would be major cryptocurrencies that would eventually increase their mining difficulty. As demand for cryptocurrencies grows in the market, so will their values, ensuring their prices do not fall deep.