Grayscale Reveals Mining Hardware Exposure Through Private Product

With a new investment product centered on bitcoin mining equipment, the cryptocurrency asset management company Grayscale hopes to profit from the decline in cryptocurrency prices.

According to Grayscale, the new product is “intended to capture (the) upside of crypto winter.”

A “private, co-investment opportunity in mining technology that underpins the bitcoin ecosystem,” Grayscale Digital Infrastructure Opportunities (GDIO), was used to create it.

“GDIO will use invested capital to purchase mining equipment – as it becomes available for sale in the coming months at what is likely to be discounted prices,” said Rayhaneh Sharif-Askary, Grayscale head of investor relations.

“GDIO will then deploy this equipment to mine bitcoin, sell bitcoin daily, and distribute cash generated to investors, generating income.”

GDIO will be open for investments from “eligible” individual and institutional accredited investors, the company said.

“While a lot of people have exposure to cryptocurrencies themselves, it’s significantly more difficult for the everyday investor to source, store, and operate mining equipment to generate a profit mining bitcoin,” Sharif-Askary said.

The new organization, the first of its sort for Grayscale, will be operated by Foundry, which also manages one of the largest mining pools, Foundry USA.

Grayscale and Foundry are both divisions of the Digital Currency Group (DCG)

“As part of Foundry’s mission to empower a decentralized infrastructure, we’re excited to partner with Grayscale to broaden the ability to invest in bitcoin mining during this opportune time” said Foundry CEO Michael Colyer in a statement from Grayscale.

Bitcoin miners have seen their margins decline in the past few months, as the cryptocurrency has fallen in value.

“In the coming months, we anticipate some miners will be forced to liquidate their mining equipment” said Sharif-Askary. “GDIO is positioned to provide liquidity to these miners, purchasing mining equipment at distressed prices, and mining profitably as the price of Bitcoin recovers.”

The bitcoin mining sector has been said to be consolidating, but businesses like CleanSpark have already been taking advantage of market conditions to buy thousands of mining equipment at deep discounts.

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