Grayscale's New Co-Investment Vehicle Aims to 'Capture the Positive Side of Crypto Winter' - Bitcoin News

Grayscale’s New Co-Investment Vehicle Aims to ‘Capture the Positive Side of Crypto Winter’ – Bitcoin News

On October 6, Grayscale Investments announced a new project that will give accredited investors the opportunity to invest in mining infrastructure that supports the digital asset ecosystem. According to the announcement, the joint investment vehicle is called Grayscale Digital Infrastructure Opportunities (GDIO), and crypto mining company Foundry will handle the operations of the new product. GDIO aims to “capture the upside of the crypto winter,” according to a Grayscale announcement Thursday.

Grayscale’s new co-investment vehicle GDIO is looking for opportunities within the cycles of the Crypto Economy – The day-to-day operations to be managed by Foundry Digital

The world’s largest digital currency asset manager, grayscale investments, announced on Thursday the launch of a new co-investment opportunity, a financial instrument that aims to take advantage of the cycles of the cryptocurrency economy market. The new co-investment product is a first for Grayscale and bitcoin mining, an infrastructure staking company digital foundry . Daily Operations Management Grayscale Digital Infrastructure Opportunities (GDIO) Co-investment tool.

Grayscale's new co-investment vehicle aims to 'capture the best of the crypto winter'
The four phases of the mining cycle, according to the Grayscale Digital Infrastructure Opportunities (GDIO) fact sheet.

Over the past 12 months, Foundry has been the largest bitcoin mining pool by total hash rate. The company’s mining pool has been seized 19.38% of the global hash rate this year, or discover approximately 10,375 out of 53,532 BTC The lumps were found within the past 12 months. The bear market has been annoying for miners this year and Grayscale believes that crypto winters could provide unique investment opportunities.

The Grayscale investment thesis states that:

With the bitcoin price dropping dramatically, leveraged miners have come under significant pressure on their operating margins. In the coming months, we expect some miners to have to liquidate their mining equipment. We believe that GDIO will have the opportunity to purchase mining equipment at distressed levels and mine Bitcoin profitably in the future.

For example, last summer crypto miner Cleanspark explained that the downturn in the cryptocurrency economy has led to “unprecedented opportunities.” At the end of June, a report indicated that $4 billion in bitcoin mining loans was in distress. Moreover, in September, Jihan Wu subsidiary Bitdeer launched a $250 million fund to help distressed miners. Michael Sonnenchin, CEO of Grayscale says his company has an advantage over the rest that allows Grayscale to find opportunities in the crypto winter cycle.

“Greyscale’s unique position at the center of the cryptocurrency ecosystem allows us to create offerings that allow investors to put capital to work through various market cycles,” said Sonnenshyn during the announcement. “Our team has long been committed to lowering the barrier to investing in the cryptocurrency ecosystem – from direct exposure to digital assets, to diverse thematic products, and now infrastructure through GDIO.”

Tags in this story

Bitcoin, Bitcoin (BTC), BitDeer, Cleanspark, Coinvestment, Coinvestment Tool, Crypto Winter, Digital Asset Manager, Foundry, Foundry Digital, Foundry USA, Grayscale, Grayscale CEO, Grayscale GDIO, Grayscale Investments, Market Cycles, and Michael Sonnenshein Mining and Stabilization Co.

What do you think of Grayscale’s co-investment tool aimed at finding opportunity in the winter cycles and the crypto market? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at Bitcoin.com News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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