Grayscale plans to buy mining equipment at discounted prices and offer co-investment opportunities to accredited investors.
Grayscale Investments announced on Oct. 6 the formation of Grayscale Digital Infrastructure Opportunities LLC ("GDIO"), a co-investment opportunity focused on Bitcoin mining hardware. By leveraging its affiliated staking infrastructure firm, Foundry, the company plans to acquire mining equipment at reduced prices during the crypto winter.
The company said the new entity will be available to individuals and institutional accredited investors at a minimum investment of $25,000. The funding is expected to be completed before the end of this year and will offer liquidity similar to private equity or infrastructure assets that have a three-to-five-year investment horizon, as Bloomberg reports. Investors who are considered accredited must meet certain criteria regarding their income, net worth, qualifications and knowledge of financial markets.
“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 in a press statement.
Foundry operates one of the biggest mining pools in the world, Foundry USA, under the same parent company as Grayscale, the Digital Currency Group. Last year, Foundry USA became the second-largest Bitcoin mining pool after China’s ban on crypto trading and mining activities.
Recently, more companies have sought consolidation opportunities amid a bear market and high-energy costs. In September, the Crypto mining firm CleanSparkannounced an agreement to acquire Mawson's Bitcoin mining facility in Sandersville, Georgia for $33 million.
Days before, the company disclosed a purchase agreement with Cryptech Solutions for 10,000 Bitmain Antminer S19j Pro units for a total price of $28 million. In July, Clean Spark bought over 1,000 Bitcoin miners from Whatsminer M30S at a "substantially discounted price." In June, the mining company also bought 1,800 Antminer S19 XP rigs.
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