Grayscale Unveils New Bitcoin Mining-Focused Investment Arm

Grayscale Investments has announced the launch of Grayscale Digital Infrastructure Opportunities LLC (“GDIO”), which offers investors the potential to invest in Bitcoin mining hardware during the bear market.

Grayscale Launches Bitcoin Mining Investment Product

On October 6, Grayscale Investments announced the launch of Grayscale Digital Infrastructure Opportunities LLC (“GDIO”), a Bitcoin mining hardware co-investment opportunity. The firm intends to acquire mining equipment at lower prices during the crypto winter by utilizing its associated staking infrastructure firm, Foundry.

Presently, Grayscale is one of the leading providers of cryptocurrency investment products. For instance, their flagship product, the Grayscale Bitcoin Investment Trust (GBTC), is the first and largest publicly traded Bitcoin fund, that the firm want to convert to a Bitcoin ETF.

According to the firm, the new entity would be open to individuals and accredited institutional investors for a minimum commitment of $25,000. According to Bloomberg, the funding is scheduled to be completed before the end of the year and will provide liquidity equivalent to private equity or infrastructure assets with a three-to-five-year investment period. Accredited investors must meet certain criteria in terms of income, net worth, qualifications, and expertise in the financial markets.

Grayscale CEO Michael Sonnenshein stated:

“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.”

How Does Grayscale’s BTC Mining Product Operate?

Goal traders include institutional investors like pension and endowment funds, as well as high-net-worth individuals and family offices, whose mandates preclude them from making direct cryptocurrency investments. During bear markets, it is not uncommon to find opportunities with exceptional upside potential. The crypto trade’s woes haven’t deterred some gamers from investing in it.

Despite the fact that several individuals have invested in Bitcoin and other cryptocurrencies, it is difficult for the average investor to locate, purchase, and manage the mining equipment required to generate income. GDIO intends to use the funds raised to purchase mining rigs in the coming months, when it is expected to be on sale at steep discounts. Nonetheless, Grayscale will be hoping for a market rebound when it has acquired all of the machines it desires.

However, Grayscale will not deal with GDIO directly. Foundry, which already oversees Foundry USA, one of the largest mining pools, will oversee the new company on a daily basis. 

Foundry USA  is run by the same parent firm as Grayscale, the Digital Currency Group. Following China’s ban on cryptocurrency trade and mining last year, Foundry USA grew to become the second-largest Bitcoin mining pool.

In recent months, a growing number of companies have sought consolidation opportunities amidst a bear market and rising energy prices. In September, the crypto mining company CleanSpark revealed a $33 million deal to acquire Mawson’s Bitcoin mining site in Sandersville, Georgia.

Days earlier, the company announced a $28 million purchase agreement with Cryptech Solutions for 10,000 Bitmain Antminer S19j Pro devices. Clean Spark purchased over 1,000 Bitcoin miners from Whatsminer M30S at a significant discount in July. In June, the mining company purchased 1,800 Antminer S19 XP units.