Bitcoin Startup HashRabbit Accelerates $500K in Funding to Expand its Operations

HashRabbit has secured $500k in funding from Tim Draper’s Draper Associates and VegasTechFund.

Photo: HashRabbit

Photo: HashRabbit

HashRabbit, a bitcoin mining management and security software developer, has managed to accumulate $500,000 in funds which means that it is allegedly planning to put towards its mining operations.

HashRabbit informed that most of the funds came from Draper Associates along with VegasTechFund, an investment company run by Zappos founder Tony Hsieh. Besides, the company partners with Israel-based mining hardware manufacturer Spondoolies-Tech, whose gear is compatible with HashRabbit’s management software.

Chris Shepherd, co-founder and CEO of HashRabbit, admitted that the company makes software for Bitcoin miners and  it is trying to make its software suite available to all bitcoin miners:

“We make software for bitcoin miners.  What that means is we are essentially the firmware that actually runs on the bitcoin miner itself… Every minute, every second this thing is not hashing, not getting credit, you’re losing money.”

The company was born when Shepherd was operating his own mining rig out of his garage in 2013. There is no doubt that he encountered such problems like keeping his equipment constantly operational,  besides he was observing that he was losing money every moment the equipment was running without hashing.

Later, together with his partner Gabe Evans, they realized that the code in most mining software had room for improvement. Besides, mining operations can be highly labor intensive. If a machine fails or overheats, physical manpower is needed to manually tend to it.

Shepherd said that HashRabbit realized that firmware is the problem, and they needed to make a better system that enables updates when zero days come out. According to Shepherd, by working directly with hardware manufacturers on security issues, the company has gained credibility with companies such as Spondoolies-Tech.

However, Shepherd thinks as Spondoolies-Tech is focused on hardware, HashRabbit can focus on the software and make sure it is persistently secure, fast and easily updated, it will be able to provide the requirements well. Besides, he stated that HashRabbit is working with other hardware manufacturers, but could not supply with details at this stage.

On the whole, that is amazing that despite massive fluctuations in price, the recent hacks and the overall level of doubt surrounding the digital currency, bitcoin is continuing to make a good name for itself and open ground through the crowds with a loyal group of followers behind it.

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