Grayscale will use Foundry’s operational expertise to control the daily operation of the new Digital Infrastructure Opportunities.
Digital asset manager Grayscale Investments has unveiled Grayscale Digital Infrastructure Opportunities, a new investment arm to focus on Bitcoin mining hardware. The company announced the new business arm on the 6th of October, referring to it as a “new co-investment opportunity” that gives investors some kind of access. Also, Grayscale said its Digital Infrastructure Opportunities would bring investors close to the infrastructure that powers the digital asset ecosystem.
Grayscale Digital Infrastructure Opportunities
The asset manager plans to leverage the operating expertise of Foundry, its affiliated asset mining and staking infrastructure firm. Grayscale will use Foundry’s operational expertise to control the daily operation of the new Digital Infrastructure Opportunities. The asset manager will acquire mining equipment at discounted prices during the crypto winter.
Furthermore, a Bloomberg report explained that Grayscale would offer the new entity to individual and institutional accredited investors for at least a $25,000 investment. Also, Grayscale plans to complete the funding before the end of the year. The report added that the liquidity offering would be similar to private equity or infrastructure assets with a three-to-five-year investment. In the official press release, CEO Michael Sonnenshein commented on the Grayscale Digital Infrastructure Opportunities:
“Graysale’s unique position at the center of the crypto ecosystem enables us to create offerings that allow investors to put capital to work through differing market cycles. 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 [Grayscale Digital Infrastructure Opportunities].”
Foundry and Grayscale operate under the same parent company, the Digital Currency Group. Foundry USA became the second-largest Bitcoin mining pool. This came after the Chinese authorities banned crypto trading and mining activities.
Foundry CEO Comments on New Partnership
Foundry CEO Michael Colyer expressed excitement over the partnership with Grayscale on Digital Infrastructure Opportunities. He said the collaboration would help broaden access to invest in Bitcoin mining during the crypto winter. Colyer continued:
“Foundry has worked to progress our mission through our suite of products, industry knowledge, hosting relationships, and the Foundry USA Pool, which is the #1 pool in the world. We look forward to helping create new opportunities for growth and innovation.”
More firms are exploring the crypto mining industry, aiming to capitalize on the ongoing crypto winter. The high energy costs, competition among miners, and lower Bitcoin prices have all affected the prices of the hardware. Bitdeer recently launched a $250 million Bitcoin mining distressed fund. Similarly, CleanSpart Inc., a public mining firm, went the same route. It purchased thousands of rigs and a Georgia mining facility from another miner for more than $30 million.