According to the announcement, the co-investment vehicle is called Grayscale Digital Infrastructure Opportunities (GDIO), and cryptocurrency mining firm Foundry will handle operations of the new product. GDIO is intended for “Capturing the Crypto Winter Rise“, according to the announcement made by Grayscale on Thursday.
Grayscale’s new co-investment vehicle, GDIO, seeks opportunities in the market cycles of the crypto economy. – Day-to-day operations will be handled by Foundry Digital
The world’s largest digital currency asset manager, Grayscale Investments announced Thursday the launch of a new co-investment opportunity, a financial vehicle that aims to take advantage of market cycles in the crypto economy. This new co-investment product is the first of its kind for Grayscale and the bitcoin mining and staking infrastructure company. FoundryDigital manage the day-to-day operations of the business.
For the past 12 months, Foundry has been the largest bitcoin mining pool by total hashrate. The company’s mining pool has captured 19.38% of the global hashrate this year, or discovered about 10,375 of the 53,532 BTC blocks found in the last 12 months. The bear market has been troublesome for miners this year, and Grayscale believes the cryptocurrency winter may provide unique opportunities for investing.
Grayscale’s investment thesis is as follows:
With the dramatic fall in the price of bitcoin, leveraged miners have come under significant pressure on their operating margins. In the coming months, we anticipate that some miners will be forced to liquidate their mining equipment. We believe that GDIO will have the opportunity to buy mining equipment at unfavorable levels and mine bitcoin profitably in the future.
For example, crypto miner Cleanspark explained last summer that the downturn in the cryptoeconomy has produced “unprecedented opportunities.At the end of June, a report noted that $4 billion in bitcoin mining loans were in distress. Additionally, in September, Jihan Wu’s Bitdeer launched a $250 million fund to help struggling miners. Grayscale CEO Michael Sonnenshein says his company has an edge over others that allows Grayscale to find opportunities in the winter cryptocurrency cycle.
“Grayscale’s unique position at the center of the crypto ecosystem allows us to create offerings that allow investors to make their capital work through different market cycles“, remarked Michael Sonnenshein during the announcement. “Our team has long been committed to lowering the barrier of investing in the crypto ecosystem – from direct exposure to digital assets, to diversified thematic products, and now to infrastructure through GDIO.“
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Grayscale’s new co-investment vehicle aims to “capture the bright side of the crypto winter”
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