Bitcoin Mining gets a private equity fund. Venture capital companies will be able to invest in Bitcoin mining farms in the future. The planned farms will also purchase green electricity – but will also centralise mining.
Entering Bitcoin Mining will be easier for institutional investors in the future – and in the best case also more lucrative. While a mass media grave is being dug while digging for the largest of all crypto currencies, the seemingly beleaguered industry will not be further impressed. According to a press release issued by BTC-ECHO, XOLARIS Service KVAG has launched a special AIF for professional investors. The private equity fund invests through a Liechtenstein target company in the infrastructure necessary for the production of Bitcoins. This is intended to financially support an already existing operational mining farm in Sweden.
Private equity funds: Off-exchange investment opportunities for cryptosoft companies
Private equity funds are used to invest in promising cryptosoft companies in order to promote their development and growth targets and make them achievable. Once the targets have been achieved, the acquired shares can be sold at a profit or the company can be placed on the stock exchange. Often the support of the companies goes beyond financial support and is complemented by entrepreneurial advice.
Private investors benefit both during the investment term and after the final profit from the sale of shares or the stock market placement. As this is an investment form for investors with comparatively high capital, it is particularly attractive for institutional investors. The focus is on companies that already go beyond the start-up or development phase.
Private equity or over-the-counter equity capital or private equity capital is thus a form of so-called equity capital in which the investment cannot be traded on regulated markets or stock exchanges. The investors are often capital investment companies, which are also known as private equity companies. In the case of risky young companies, this is referred to as venture capital. The investors are accordingly called venture financing companies or venture capital companies. (Source: Finanztreff.de)
Private Equity Funds for crypto trader
In order to make Bitcoin Mining attractive to professional crypto trader within such a regulated framework, there is now the private equity fund “Bitcoin Farming”. There is also a first crypto trader 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 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, the production of new Bitcoin will be distributed among fewer and larger market participants. 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 environment?
The company also wants to address the question of the often criticized consumption of electricity. 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.