On October 6, Grayscale Investments announced a new venture that offers accredited investors the opportunity to invest in mining infrastructure that will enhance the digital asset ecosystem According to the announcement, the co-investment vehicle is called Grayscale Digital Infrastructure Opportunities (GDIO), and crypto mining firm Foundry will manage the new offering GDIO is intended to “capture the upside of crypto’s winter and was detailed in Grayscale’s announcement on Thursday.
Grayscale’s new co-investment vehicle, GDIO, will look for opportunities in the market cycle of the crypto economy– day-to-day operations will be managed by Foundry Digital
the world’s largest digital currency asset manager. Grayscale Investmentsannounced Thursday the launch of a new co-investment opportunity, a financial vehicle designed to take advantage of the crypto economy market cycle. The new co-investment product is the first of its kind for Grayscale and bitcoin mining and staking infrastructure companyFoundry Digitalwill “manage the day-to-day operations” ofGrayscale Digital Infrastructure Opportunities (GDIO) will “manage the day-to-day operations” of the co-investment vehicle.
Over the past 12 months, Foundry has been the largest bitcoin mining pool in terms of total hashrate. The company’s mining pool has won19.38%of the global hashrate this year and has discovered approximately 10,375 of the 53,532blocks. We have discovered about 10,375 of the BTCblocks discovered in the past 12 months. The bear market has been troubling for miners this year and Grayscale believes that the crypto winter could provide a unique opportunity for investment.
Grayscale’s investment thesis states.
With the dramatic drop in the Bitcoin price, leveraged miners are experiencing significant pressure on their operating margins. In the coming months, we expect some miners will be forced to liquidate their mining equipment, and GDIO believes there is an opportunity to purchase mining equipment at unfavorable levels in order to mine bitcoin for profit in the future.
For example, crypto miner Cleanspark explained this summer that the downturn in the crypto economy has created “unprecedented opportunities. “At the end of June, it noted that $4 billion in bitcoin mining loans were in distress reported. Additionally, in September, Jihan Wu’s Bitdeer launched a $250 million fund to help distressed miners.Grayscale CEO Michael Sonnenshein said that Grayscale is finding opportunities in the crypto winter cycle to be able to do so, he said, his company is better than most.
“Grayscale’s unique position at the center of the crypto ecosystem allows us to create offerings that allow investors to deploy capital through different market cycles,” Sonnenshein said in the announcement.” Our team has long worked to lower the barriers to investing in the crypto ecosystem, from direct exposure to digital assets, to diverse themed products, and now infrastructure through GDIO.”
What do you think about Grayscale’s co-investment vehicle aimed at finding opportunities in the crypto winter and market cycle? Please share your thoughts on this topic in the comments section below.
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