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A Bitcoin Mining Investment Product Will Be Launched by Grayscale and Foundry

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 A Bitcoin Mining Investment Product Will Be Launched by Grayscale and Foundry



Grayscale, a Bitcoin asset management company, recently unveiled a new investment product that exposes investors to Bitcoin mining hardware. 

The fund's revenue will be used to buy Bitcoin ASIC machines, which Foundry Digital will use to mine and trade bitcoin for investors. 

The Strategic Mining Play of the Asset Management Company According to the firm website, Grayscale Digital Infrastructure Opportunities (GDIO) seeks to offer a source of income distinct from "traditional income-oriented investments."

The business plans to invest in mining equipment, buy and sell Bitcoin every day, and distribute operating earnings to investors every three months. 

Grayscale CEO Michael Sonnenshein posted on Twitter, "After discussion with Mike Colyer [CEO of Foundry] and the Foundry team about crypto winter, we felt there was a potential to connect investors directly with crypto mining." The outcome is GDIO, he continued. 

The price of Bitcoin and other popular cryptocurrencies has decreased by around 70% since its all-time high in November 2021, wiping out billions of dollars in investor capital and forcing some big businesses into bankruptcy.

These companies included bitcoin miners, and as the price of bitcoin fell, so did their profits from creating new bitcoin. 

Opportunity To Buy Mining Equipment At A Deep Discount Given That Mining Is Currently Less Profitable Than It Was Earlier, The Opportunity To Buy Mining Equipment At A Deep Discount Is A Crucial Aspect Of GDIO's Investment Thesis. 

As part of a four-stage mining cycle known as the "Rising Bull," "Mining Gold Rush," "Inventory Flush," and "Shakeout," the company is betting that Bitcoin will eventually experience a price boost.

The "Inventory Flush" stage of the mining cycle, according to Grayscale, is where the hash rate is still strong but the price of Bitcoin has decreased dramatically. 

According to the hypothesis, the resulting "Shakeout" will cause miners to stop using their equipment, which will lower the hash rate. 

The company stated that historically, investing during a "Shakeout" phase and quitting during a "Mining Gold Rush" phase has been the most successful.

Grayscale is in charge of managing the world's largest Bitcoin fund, which is responsible for managing more than 600,000 Bitcoin valued at roughly $12.7 billion. 

More than 3% of the network's total supply is represented by that. 

The fund provides investors with wide exposure to the price of Bitcoin through a more traditional investment offering. 

The Grayscale Bitcoin Trust (OTCMKTS: GBTC), on the other hand, is currently trading at one of its largest discount rates ever, which indicates that the value of each share is less than the value of the underlying Bitcoin it is meant to represent.

Article Credit: Investing.com

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