Bitfury, a blokchain technology company, and Final Frontier, an investment firm based in Switzerland, have partnered to launch a regulated bitcoin mining fund.
Announced in a blog post on April 24, Bitfury said that the fund is intended for institutional and professional investors to offer them “convenient access” to bitcoin mining
The company said that there have been “technological, logistical, financial and execution risk challenges” to traditional bitcoin mining. The fund intends to bring solutions to those challenges with a product now authorized by a European financial watchdog. It has not been specified, however, which regulator.
The fund will invest in turnkey assets, including mining sites in “lowest electricity and operating costs globally,” searched and managed by Bitfury, which focuses on creating cryptocurrency mining devices and also mines itself.
Imraan Moola, co-founder of Final Frontier, said that the fund has been introduced at an “advantageous” time for investors, adding that:
“With the bitcoin price down significantly from its all-time high, yet institutional interest growing every day, now may be an opportune time to consider investing in bitcoin mining.”
George Kikvadze, executive vice chairman of Bitfury, said that the fund will assist investors “strengthen” their portfolios and boost mainstream adoption of bitcoin.
Bitfury collaborated with South Korean R&D company Commons Foundation earlier this year to jointly introduce a network of bitcoin mining operations in Paraguay.
Bitfury is also purportedly planning to hold an initial public offering (IPO) in London, Amsterdam, or Hong Kong, probably this year. The company secured $80 million in November, in a round led by venture capital company Korelya Capital, with participation from Macquarie Capital, Mike Novogratz’s Galaxy Digital, and Dentsu Inc.