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Grayscale’s New Co-Investment Vehicle Aims to ‘Capture the Upside of Crypto Winter’ – Bitcoin News


6, Grayscale Investments announced a new venture offering accredited investors the opportunity to invest in the mining infrastructure that powers the digital asset ecosystem. According to the announcement, the co-investment vehicle is called Grayscale Digital Infrastructure Opportunity (GDIO) and cryptocurrency mining company Foundry will handle the operations of the new product. GDIO is meant to “capture the growth of the crypto winter,” Grayscale announced Thursday.

Grayscale GDIO’s new co-investment vehicle looks for opportunities in the crypto economy’s market cycle – Daily operations managed by Foundry Digital

The world’s largest digital currency asset manager, Grayscale investment, announced the launch of a new co-investment opportunity on Thursday, a financial vehicle that aims to capitalize on the market cycles of the crypto economy. The new co-investment product is the first of its kind for Grayscale and its bitcoin staking and mining infrastructure company. Foundry Digital will “manage the day-to-day operations” of Grayscale digital infrastructure opportunities (GDIO) co-investment vehicle.

Grayscale's New Co-Investment Vehicle Aims to 'Capture the Success of Crypto Winter'
Four phases of the mining cycle, according to the Grayscale Digital Infrastructure Opportunity (GDIO) fact sheet.

Over the past 12 months, Foundry has been the largest bitcoin mining pool in terms of total hashrate. The company’s mining pool has been arrested 19.38% of the global hashrate this year, or detected around 10,375 out of 53,532 BTC blocks found in the last 12 months. The bear market has been troubling for miners this year, and Grayscale believes the crypto winter could present a unique investment opportunity.

Grayscale’s investment thesis states:

As the price of bitcoin dropped significantly, leveraged miners came under significant pressure on their operating profit margins. In the coming months, we predict that some miners will be forced to liquidate their mining equipment. We believe that GDIO will have the opportunity to buy mining equipment at a difficult level and mine bitcoin profitably in the future.

For example, cryptocurrency mining company Cleanspark explained this past summer that the downturn in the crypto economy has created “…unprecedented opportunity. At the end of June, a report note $4 billion in bitcoin mining loans crashed. Furthermore, in September, Jihan Wu’s Bitdeer launched a $250 million fund to help struggling miners. Grayscale CEO Michael Sonnenshein said his company has an edge over the rest that allows Grayscale to find an opportunity in the crypto winter cycle.

“Grayscale’s unique position at the heart of the crypto ecosystem allows us to create services that allow investors to fund their operations through different market cycles,” Sonnenshein said. review in the announcement. “Our team has long been committed to reducing barriers to investing in the crypto ecosystem – from direct exposure to digital assets, to diverse thematic products and now is the infrastructure through GDIO.”

Cards in this story

Bitcoin, Bitcoin (BTC), BitDeer, Cleanspark, Co-investment, co-investment vehicle, Crypto winter, Digital asset manager, Foundry, Foundry Digital, Foundry USA, grayscale, Grayscale CEO, Grayscale GDIO, Grayscale investment, Market cycle, Michael Sonnenshein, mining, joint stock company

What do you think of Grayscale’s co-investment vehicle aimed at finding opportunities during the market cycle and crypto winter? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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