Swiss investment firm, Bitfury launch bitcoin mining fund

FILE PHOTO: Representation of the Bitcoin virtual currency standing on a PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

By Gertrude Chavez-Dreyfuss

(Reuters) - Swiss investment firm Final Frontier and global blockchain technology company the Bitfury Group, which was recently valued at $1 billion, on Wednesday announced the launch of a regulated bitcoin mining fund.

The fund is under the supervision of Liechtenstein's financial regulator.

Both companies, however, did not disclose the size of the fund, which was developed by Final Frontier for institutional and professional investors to gain access to the esoteric world of bitcoin mining.

Bitcoin mining entails updating the ledger of bitcoin transactions known as the blockchain. Miners run extremely powerful computers in a race against other miners to guess a specific number. The first miner to guess the number gets to update the ledger of transactions and also receives a reward of 12.5 newly minted bitcoins.

Bitfury, which holds a minority stake in Switzerland-based Final Frontier, said in a statement it is providing the hardware and end-to-end services for the bitcoin mining fund. The mining sites where the equipment will be deployed will be in locations scouted and serviced by Bitfury.

The fund will invest in turnkey assets consisting of mining sites with some of the lowest electricity and operating costs globally that feature Bitfury data centers, both companies said.

Imraan Moola, co-founder of Final Frontier, said the firm is launching the fund at an advantageous time for investors. "With the bitcoin price down significantly from its all-time high, yet institutional interest growing every day, now may be an opportune time to consider investing in bitcoin mining," Moola said.

Bitcoin has trended higher the last few weeks, trading up nearly 4 percent at $5,594.65 on the Bitstamp platform late Tuesday.

That rally has made bitcoin mining more profitable, said crypto analyst Alex Kruger, noting that profits have risen since the start of April.

He said on Twitter that the break-even cost for efficient bitcoin mining operations currently hovers around $3,550 to $4,350, while the price of bitcoin is in the $5,500-plus range. That ensures a $1,000-plus profit for each bitcoin mined.

Bitfury late last year raised $80 million from investors including the merchant bank founded by billionaire Mike Novogratz, a former macro hedge fund manager at Fortress Investment Group. That funding pushed Bitfury's valuation to $1 billion.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Lisa Shumaker)

Must Read

Mississippi town mourns deaths of 3 couples in...

Aug 15, 2016

Three married couples killed in the crash of a small airplane in Alabama all lived in the...

Ford to invest $75M in autonomous vehicle sensor...

Aug 16, 2016

Ford and Chinese search engine company Baidu will invest $75 million each in Velodyne, a company...

Grassley: FBI improperly restricting access to...

Aug 17, 2016

A Republican senator says the FBI is improperly restricting access to materials from its closed...

'Auction' of NSA tools sends security companies...

Aug 18, 2016

The leak of what purports to be a National Security Agency tool kit as part of a surreal online...

Wal-Mart raises annual profit outlook, reports...

Aug 18, 2016

Wal-Mart is raising its annual profit outlook after reporting strong quarterly sales and profit

About Us

Started in 2015, Science Of The World offers in-depth news about the latest scientific discoveries. If you’re looking for a reliable source, Science Of The World is the one for you.

Contact us: sales[at]scienceoftheworld.com

Subscribe Now!