Grayscale creates vehicle for bitcoin-mining investments

The digital asset manager Grayscale Investments has launched a product for joint investments in bitcoin mining equipment amid the crypto winter.

NEW TODAY: We’re teaming up with @FoundryServices to launch Grayscale Digital Infrastructure Opportunities LLC (GDIO), a private co-investment opportunity in the mining hardware that powers the #Bitcoin ecosystem. 🧵 https://t.co/JyjilwIm48 pic.twitter.com/jR4RMtVul8

— Grayscale (@Grayscale) October 6, 2022

The structure is overseen by the unit created for it, Grayscale Digital Infrastructure Opportunities (GDIO).

The arrangement is implemented in collaboration with affiliated mining firm Foundry. Both companies are subsidiaries of the Digital Currency Group, Barry Silbert.

Grayscale expects that the bear market in the crypto industry will create opportunities to buy bitcoin mining equipment at significantly reduced prices.

3/ Past events are not indicative of future results, but looking at past cycles in the mining industry, we believe there may soon be opportunities to purchase mining equipment at steeply discounted prices. pic.twitter.com/8ObNqzapSt

— Grayscale (@Grayscale) October 6, 2022

“Our team has long sought to lower the barrier to investment in the crypto ecosystem—from direct access to digital assets to diversified thematic products, and now infrastructure via GDIO,” said Grayscale CEO Michael Sonnabend.

The operator of the largest bitcoin mining pool, Foundry, will provide the day-to-day management of the new structure.

“As part of the mission to expand decentralised infrastructure capabilities, we are pleased to collaborate with Grayscale to broaden investment options in bitcoin mining at this opportune time,” said Foundry CEO Michael Colyer.

Investments in GDIO are available to qualified individual and accredited institutional investors. Grayscale expects to distribute profits quarterly.

In 3–5 years, after market conditions change, the company will consider an exit strategy for GDIO, possibly through the sale of equipment.

Earlier, Grayscale analysts forecasted the end of the crypto winter by the end of March 2023.

Read ForkLog’s bitcoin news in our Telegram — news on cryptocurrencies, prices and analysis.