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Crypto-Drunk Swiss Investment Firm Launches Bitcoin Mining Fund

Last Updated March 4, 2021 2:44 PM
Mark Emem
Last Updated March 4, 2021 2:44 PM

By CCN.com: Ordinarily, institutional investors in the crypto space are usually portrayed as primarily interested in investing only in digital assets. Now, a partnership between blockchain startup Bitfury Group and Swiss investment firm Final Frontier aims to offer institutional and professional investors a way to reap from Bitcoin’s infrastructure too.

In a blog post , the two firms indicated that they have launched a regulated bitcoin mining fund targeting this particular class of investors. The product has been developed by Final Frontier and will be under the supervision of the Financial Market Authority, Liechtenstein’s financial regulator.

With the fund, the ‘technological, logistical, financial and execution risks’ hindering institutions from investing in bitcoin mining have been eliminated.

Barriers to Investment for Institutional Clients Gradually Getting Abolished

According to Bitfury’s CEO, Valery Vavilov, the bitcoin mining fund will enhance Bitcoin’s appeal among this coveted group of investors:

With this innovative fund, Final Frontier is providing investors with a novel way of accessing bitcoin mining opportunities, creating financial opportunities and furthering institutional adoption of bitcoin.

Bitfury will scout for and operate the mining sites. These sites will ideally be located in areas with ‘some of the lowest electricity and operating costs globally’. The blockchain firm’s current valuation is $1 billion, according to Reuter s. Interestingly, Bitfury also owns a minority stake in Final Frontier.

The launch of the mining fund comes at a time when interest in the sector is expected to grow. Not only has cryptocurrency hit a new high for 2019 but some analysts now consider bitcoin mining profitable.

Bitcoin Mining Now Profitable

Per global markets analyst Alex Kruger , the breakeven cost for mining bitcoin is currently about $3,550. This is assuming an electricity cost of $0.055 per kWh when using an Antminer S9 costing $200.

Presently, the price of bitcoin is slightly above $5,500 while its dominance in the crypto markets is approaching 55 percent.

Bitcoin price | Source: Yahoo Finance

Various analysts are also bullish about Bitcoin’s prospects especially following the formation of the Golden Cross. This is a bullish pattern that forms when an upward-headed 50-day moving average ‘crosses’ the 200-day moving average from under.

First Bitcoin’s Golden Cross in Four Years

Occurring earlier this week, it was the first time bitcoin was experiencing the bullish pattern since 2015.

Other bullish signals have included a resurgence in interest in cryptocurrencies by South Koreans. A Korea Financial Investors Protection Foundation study indicated that cryptocurrency investors had increased their level of investment by 64 percent to average $6,097.

Citizens and residents of the East Asian country are considered to be some of the most active in the crypto markets globally. According to Coinhills , the Korean Won is the fourth most exchanged national currency in the crypto markets.