Swiss investment firm Final Frontier has partnered with blockchain company Bitfury to launch a new regulated cryptocurrency mining fund aimed at attracting institutional investors.
In a statement, Final Frontier said developed the fund to provide institutions with “convenient access” to cryptocurrency mining, at a time of increasing commercial difficulties for standalone miners. The firm said that there were a number of “technological, logistical, financial and execution risk challenges” with accessing mining, which the fund will aim to eliminate.
The hope is that this will provide an attractive alternative to institutional investors who may not themselves see the appeal in becoming directly involved in crypto mining.
The fund is regulated in the European Union (EU), after getting the nod from a European Union financial regulator. Specific details on the regulator in question have not yet been divulged, though it has been widely assumed this will allow the firm access across the bloc’s 27 member state markets.
The fund will invest in assets identified by Bitfury, and will consist of mining sites with the “lowest electricity and operating costs globally.”
Final Frontier co-founder Imraan Moola said the fund was coming at a good time for investors, who might otherwise struggle to invest profitably against the backdrop of collapsing BTC prices. He noted, “With the [BTC] 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.”
In a statement, Bitfury’s executive vice chairman George Kikvadze said the launch would help bring cryptocurrency to a more mainstream audience, by encouraging more institutional investors to explore opportunities in the sector.
CEO Valery Vavilov said the new partnership with Final Frontier would deliver significant benefits for investors globally, noting, “The new partnership between Final Frontier and Bitfury is starting to produce significant benefits for investors around the world. 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 is widely reported to be considering an initial public offering (IPO) later this year, with London, Amsterdam and Hong Kong earmarked as potential launch markets.
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