Grayscale To Help Investors Profit Off Crypto Winter With New Investment Vehicle
- Grayscale Investments announced the formation of Grayscale Digital Infrastructure Opportunities LLC, a private, co-investment opportunity in mining hardware.
- The investment vehicle will also allow customers to invest and capitalize on the reduced prices of Bitcoin (BTC) mining infrastructures that have been affected by the current crypto winter.
- The crypto asset management firm’s sister firm Foundry will be responsible for the management of day-to-day operations at the newly formed GDIO.
Grayscale Investments, the largest digital assets investment manager, has officially debuted a new investment vehicle with the formation of Grayscale Digital Infrastructure Opportunities LLC which has been described as “a private, co-investment opportunity in mining hardware” that will allow investors take advantage of the current crypto winter.
In an announcement on Oct. 6, the crypto investment management firm revealed that the Grayscale Digital Infrastructure Opportunities LLC or simply GDIO will also allow customers to invest and capitalize on the reduced prices of Bitcoin (BTC) mining infrastructures that have been affected by the current crypto winter and reduction in trading volume of these blockchain-based assets.
The private, co-investment opportunity in mining hardware created by Grayscale will power the Bitcoin ecosystem which has been under a lot of pressure due to decreasing prices and increased pressure from competitors like Ethereum (ETH) which recently took the spotlight with its transition to proof of stake from proof of work.
“Grayscale’s unique position at the center of the crypto ecosystem enables us to create offerings that allow investors to put capital to work through differing market cycles. Our team has long been committed to lowering the barrier for investing in the crypto ecosystem – from direct digital asset exposure, to diversified thematic products, and now infrastructure through GDIO,”
said Grayscale CEO Michael Sonnenshein.
To succesfully implement its goals, the largest crypto asset management firm is leveraging the “operating expertise of its affiliated digital asset mining, staking infrastructure firm, Foundry.” Interestingly, Foundry will be responsible for the management of day-to-day operations at the newly formed GDIO and work towards the interests of the investors.
The digital asset management firm also took to Twitter to announce the new investment vehicle to its followers while confirming its partnership with Foundry which will manage the day-to-day operations as mentioned above.
Foundry is a part of the Digital Currency Group (DCG) which owns Grayscale and the sister firms will work together on this new project. The firm will use the money raised from accredited investors to purchase new and mining hardware and other equipment amidst a bearish market, while it will also provide financing to existing mining businesses.
“Any equipment the new enterprise obtains will be set to mine Bitcoin as part of Foundry’s USA pool, the world’s largest. In return, earned Bitcoin would be distributed to investors as a cash dividend,”
Sonnenshein told Yahoo Finance.
The new venture of Grayscale comes at a time when mining firms are not doing so well as recently major crypto mining firm Compute North filed for bankruptcy. On the other hand, Bitcoin miner CleanSpark purchased its rival Mawson Infrastructure Group’s mining facility in Sandersville, Georgia.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
