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- The grayscale investment announced a partnership with crypto mining and staking firm foundry.
- They will launch a co-investment vehicle which will be named Grayscale Digital Infrastructure opportunities (GDIO)
- Grayscale’s Investment thesis said that GDIO would have an opportunity to purchase mining equipment at distressed levels.
Grayscale Investement LLC., which is a digital currency investment service, has recently announced that it will partner with crypto mining and staking firm Foundry to launch the co-investment vehicle, which will be named Grayscale Digital Infrastructure opportunities (GDIO)
On October 6, Grayscale Investment disclosed the launch of a new-investment opportunity which will be a financial vehicle that will give the upper hand to crypto miners as well as would improve the Crypto economy’s market cycle and the operation of Grayscale Digital Infrastructure opportunities (GDIO) will be managed by the crypto mining and stalking firm Foundry. It is being said that GDIO, the co-investment vehicle is the first of its kind.
Grayscale’s investment thesis said
“As bitcoin prices have fallen dramatically, leveraged crypto miners have experienced meaningful pressure on their operating margins. In the comming months, we anticipate that some crypto miners will be forced to liquidate their mining equipments . We believe GDIO will have an opportunity to purchase mining equipments at distressed levels and to profitably mine bitcoin in the future.”
Grayscale CEO Michael Sonnenshein said, “Grayscale’s unique position at the center of the crypto ecosystem enables us to create offering that allows investors to put captial to work through differing market cycle. He further added that “Our team has long been committed to lowering the barrier for investing in the crypto ecosystem -from direct digital asset exposure to diversified thematic products, and now infrastructure through Grayscale Digital Infrastructure opportunities (GDIO)
Foundry CEO Michael Colyer stated
“As a part of foundry’s mission to empower a decentralized infrastructure we’re exicted to partner with Grayscale to broaden the ability to invest in crypto mining during this opportune time.”
Fall of prices of the infrastructure of bitcoin mining
It has not been hidden by anyone that this year has not been great for the crypto miners. Crypto winters have been for about a year now. Due to crypto winters, crypto miners’ profit margin has dived to almost 50%. All this has directly harmed the prices of the infrastructure required for crypto mining, such as specialized computers, which were in high demand until last year before crypto winters; according to an index maintained by Luxor Technologies, the demand for the mining machines has decreased horrifyingly since 2020. Automatically it affected the prices because the largest manufacturers offer a huge discount.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
