Genesis Mining has just come up with the world’s first Bitcoin mining fund intended for high net worth individuals, investment funds, and accredited investors. Genesis Mining was launched in 2013 by a group of enthusiasts who knew each other by using the same platform for buying and selling Bitcoins.
The official website reveals that although members of the team come from different scientific disciplines, they are united by the common faith in cryptocurrencies. “We are all strong believers in the future of digital currencies and we love being part of this growing community!”
Marco Streng, CEO and co-founder of Genesis Mining, said: “We’ve made a habit of listening to our customers and doing what they ask. This is what’s allowed us to reach over 100,000 customers in just two years and what will make this fund a success. When you receive $100m (£71m) worth of inquiries from big-time investors looking to enter the market, you’d be foolish not to listen and build a solution.”
As is well-known, bitcoins are created by mining, a process involving computer algorithms on equipment owned or rented out by companies. Bitcoins with value of $400 each can be purchased from trading exchanges such as BitStamp and Kraken.
The Logos Fund from Genesis Mining will enable investing in it instead of investing into mining by purchasing and managing own hardware. Investing in the Logos Fund, they will get direct access to Genesis Mining’s industry expertise, large scale operations, and discounted hardware.
Streng said in the statement that Genesis will initially seed the fund with $1 million of its own capital. The mininum investment for the fund will make up $25,000 and investors have already expressed an interest in putting in $100 million.
The Logos Fund was registered with the U.S. Securities and Exchange Commission last week. It has also plans to register with the German financial regulator BaFin to make the fund available for European investors. “The fund would be clearly focused on bitcoin mining, but we can also purchase bitcoins directly from the exchanges,” said Streng.
IBTimes reminds that Bitcoin and its underlying technology, known as blockchain, has garnered serious interest from major Wall Street banks and Silicon Valley. To support the claim with evidence, we can cite $1bn (£700m) that has been invested into Bitcoin-related startups since 2013. The investment is being used to establish the infrastructure needed to scale Bitcoin.
Mining is essential for Bitcoin’s viability and success. High-powered supercomputers join together to process and record Bitcoin transactions. Bitcoin mining enables the decentralised network functionality that is crucial for Bitcoin to operate.