Today, the market gets red again and the overall crypto market has experienced the loss of $6 billion as it declined from the total valuation of $142 billion to $136 billion. Despite the worst conditions, few businesses are betting high on bitcoin and the distributed ledger system.
The latest press reveals that one of the private equity firms from German is focusing on the potentials of bitcoin mining. Consequently, an investment fund manager called Xolaris Service KVAG is launching a private equity fund solely for Bitcoin mining. As a result, the firm is planning an initial fund of $50 million, targeting Asian investors. With the launch plan, the firm has already set up its office in Hong Kong in July.
Xolaris is all set to launch European mother fund this week and will begin the subscription for the Asia fund in this month (December 2018).In order to begin the operation, the firm plans to raise the fund ranging from €30 billion to €50 billion, expecting 21 percent as its total ROI. Investors interested in the project would require a minimum investment of €250,000.
Market Slump – Opportunities for Mining Farm Operators
Despite the market slump, Stefan Klaile, managing partner of Xolaris Group is potentially moving ahead for the launch. He notes that;
“Bitcoin mining return is affected by a combination of drivers including bitcoin price levels, hash rate, mining difficulty and the price of mining equipment such as servers. We see recent developments as giving [our mining farm operator] the opportunity to increase market share.”
This new initiative by private equity fund dedicated to bitcoin mining is a response to the constant requests received by Xolaris Service KVAG. Stefan Klaile said;
“We’ve constantly received requests from professional investors to release a regulated product for the cryptocurrency sphere.”
With the fact that the hash rate during August declined to 40%, more specifically, it has recently dropped to 36 PH (petahas every second) from 60PH in late October. While most miners slow down the mining operation, only few miners continued the process. Although these stat looks really off-putting for miners to continue operation, Klaile said: “it has opened up opportunities for mining farm operators”. Moreover, the source continued Klaile’s opinion as;
With fewer players competing for a finite pool of bitcoin supply, capped at 21 million by its unnamed inventor under the pseudonym Satoshi Nakamoto. About 80 percent of that supply has already been mined as of June.