For a long time, institutional clients have shown a clear reluctance to invest directly in bitcoin fleeing like the plagued market volatility. By contrast, alternative exposure products to Bitcoin and cryptocurrencies quickly caught their attention, so as to take advantage of what is currently one of the most profitable assets on the market. A few days ago, Bitfury Group announced the launch of a partnership program that will allow institutions to invest in Bitcoin mining. Valery Vavilov – CEO and founder of Bitfury – tried to explain the highlights of its program and the benefits offered to institutional clients.
Allow family offices and Institutional Funds to diversify their portfolios
Before the launch of this program, the latter only hada limited range of digital asset infrastructure investment products.
Valery Vavilov, hopes that the program will be well received by these new partners since it offers them exposure to cryptocurrencies without having to have the operational know-how required to actually hold them.
Institutionals will now be able to invest in Bitfury’s leading data centers in North America and other regions through tailor-made investment. This will take into account direct investment and engagement through private capital in companies in the sector. In short, capitalism in its most classic extraction.
In addition, the CEO of Bitfury explains: “The program will allow institutional actors to‘Invest within the framework of an exceptional risk / return profile and will contribute to the adoption of digital assets making the underlying infrastructure stronger, safer and more secure “. The proposed partnership model also provides that the company shares the risk as in the case of a fund partnership model.
A data center with low operating costs
Bitfury will take care of the technical aspects of the operation, the provisioning of the site, the acquisition of equipment and their maintenance. It will be recalled that the company has been one of the main providers of turnkey digital asset infrastructure solutions in Europe since 2011. The company claims to use the most advanced equipment for the mining, and it has subsidiaries that develop cooling and microchip solutions that serve its own facilities.
It thus launched within the framework of this program profitable bitcoin mining sites around the world, especially at Canada, in Norway, in Iceland and in Central Asia.
These sites benefit from an electricity price of $ 0.03 per kWh, or even less, which would be lower than most other sites in the world.
Bitfury highlights its experience in low-cost energy access, but also its expertise in the design and operation of high performance equipment.
This Bitfury initiative is somewhat reminiscent of the Chinese group Canaan, which offered exposure to bitcoin through participation in these mining facilities. The success of the project could stimulate others and allow bitcoin mining to become a form of investment in its own right, even as major players in the sector throw in the towel in the post-halving world.
In the crypto-bath since 2017, both much too late but quite early from the point of view of my future grandchildren 🙂
Writer, Amateur Trader, Ethereum and NEO-compatible