Private Equity Funds for Bitcoin Mining

In order to make Bitcoin Mining attractive to professional investors within such a regulated framework, there is now the private equity fund “Bitcoin Farming”. There is also a first investment object already. This is located in Sweden with approximately 2,000 high-performance computers. Due to the current Bitcoin price, mining is currently still below the market price. However, due to the total volume defined in the Bitcoin protocol and the associated deflation, the company expects rising prices in the medium to long term.

However, what is associated with the concentration of Bitcoin mining farms on large investors and institutional investors is an increasing centralisation of Bitcoin mining, as has already been criticised again and again by Bitmain. Ultimately, it is this concentration of mining processes that the company hopes will increase its competitiveness.

This is what the Bitcoin news press release says:

“Due to the ever more complex calculation steps required to produce a Bitcoin, ever more specialised high-performance technology is required. It is therefore of the utmost importance to us that we have ensured via our network that we have access to the latest mining rigs in large quantities at all times. In the future of the Bitcoin news, the production of new Bitcoin will be distributed among fewer and larger market participants according to the Bitcoin news. The fund is designed in such a way that we constantly adapt our computing power to demand and thus remain competitive in the long term”, explains Marc Stehr, the initiator of the fund.

And the Bitcoin formula?

The Bitcoin formula company also wants to address the question of the often criticized consumption of electricity as reported in this Bitcoin formula review. Accordingly, Xolaris says that the location in Sweden will reduce the necessary cooling capacity. In addition, the electricity will come from hydropower. Efforts to colour Bitcoin Mining green are already being made by Intel, among others. On 27 November, the chip manufacturer received a patent for energy-efficient mining of crypto currencies.

According to the financing model, those who want to invest have to take a little more money into their hands. Investors can subscribe to the fund from a minimum investment amount of 250,000 euros and up to an issue volume of 30 million euros.

With its initiative, the company is ultimately making the mining process attractive for institutional investors. The narrative of institutional and large-scale investors is often seen as a promise of salvation in the crypto community. You can find out what role the “story of the big players” can play in the valuation of crypto currencies in our crypto compass special “House of Nakamoto”. (First issue free of charge, click here to order).