Russia’s first mutual investment fund dedicated to financing cryptocurrency mining operations is being established. It will be available to qualified investors and will finance the acquisition of coin mining equipment, according to Russian press reports.
Russia’s Crypto Mining Sector to Gain Shareholders Through Investment Fund
Work has begun on the establishment of the first mutual fund for investment in crypto-mining companies in Russia, the business daily Kommersant reported. It will operate as a venture fund to purchase mining hardware through a special entity and then lease the equipment.
The article details that this new closed-end fund will be established by Finam Management and will be registered with a specialized custodian in March. Only qualified investors will have access, with a minimum threshold of 300,000 rubles (about $4,000).
Vladislav Kochetkov, CEO of Finam, explained that the company intends to raise 500 million rubles (over $6.6 million) before incorporating the leasing company. Part of the funds will be used to purchase mining machines, while the rest will be used to pay for electricity and to maintain the fund.
The project is a unique proposition for Russia, the magazine noted. Managers have so far created mutual funds that focus exclusively on businesses developing blockchain technology; in 2021, some tried to register funds for cryptocurrencies and their derivatives, but the Bank of Russia banned the inclusion of foreign crypto assets inmutual funds.
However, participants in the collective investment market believe that after the sanctions of the past year, the financial authorities have at least softened their stance on crypto-related activities such as mining and are likely to approve the launch of funds. the asset management department of Ingosstrakh-Investments Director Artem Mayorov told the newspaper that if that happens, he will launch one of his management companies as well.
Bitriver, a leading Russian mining operator and hardware hosting service provider, has revealed that it has seen a marked increase in interest from Russia’s largest banks, investment and management companies since Q4 2022. Alexander Baryshnikov, the company’s head of digital project development, elaborated.
We are in the final stages of negotiations on the organization of a number of funds related to investments in industrial mining.
The growing focus on crypto-mining is said to be due to the rapid shrinkage of investment opportunities in the domestic financial market and the high profit potential of mining investments. Russia offers certain advantages as a mining destination, including low-cost energy and a cool climate. Legislation to regulate the industry is being debated in the Russian Chamber of Deputies.
