If it seems like Grayscale Investments is always celebrating something, that’s probably because it is. Whether it’s debuting a new ad campaign on CNBC or taking shots at bitcoin’s rival store of value, gold, the firm is usually up to something.
Now its parent company is out inking deals to bolster its revenue streams. For years, the Digital Currency Group (DCG), parent company of Grayscale, has been on the sidelines of bitcoin mining.
But now it’s going all-in, with a $100 million commitment to Foundry, a cryptocurrency mining and staking startup that arrived on the scene last year. Foundry gains access to a well-capitalized parent company whose Grayscale business is sitting on $4 billion in AUM.
DCG will pump $100 million into Foundry between now and year-end 2021, giving miners direct access to DCG’s strong balance sheet. Even though Foundry may be a newcomer to the space, it has seemingly already captured the attention of a significant player. The announcement states,
[Foundry] has…extended tens of millions of dollars in equipment financing to other mining organizations and helped to procure approximately half of the bitcoin mining equipment delivered in North America this year.
Raising Its Profile
The Foundry social media team quickly introducing itself to Crypto Twitter on the heels of the announcement. Crypto Twitter responded, warning that Foundry may want to turn back now while they have a chance.
Mike Colyer, a GE alum, has been at the helm of Foundry since last year, according to his LinkedIn profile, and will continue to lead the company, the focus of which will be on bolstering the growth of the mining industry in North America. DCG Founder and CEO Barry Silbert also chimed in,
Digital asset mining and staking provide the backbone of blockchain technology that will drive that advancement. Foundry is bringing critical resources and guidance to an essential corner of the industry, and Mike Colyer and his team have the expertise, credibility, and integrity to support the evolving needs of miners and manufacturers.
North American Bitcoin Mining
Perhaps one of the most famous bitcoin miners has been Abigail Johnson, CEO of Fidelity Investments, which oversees more than $2 trillion in assets. Just yesterday, BeInCrypto reported that Fidelity has filed for a new bitcoin fund with the SEC.
In July, Fidelity and BitOoda Research published a report indicating that approximately half of the global mining power capacity belongs to China, while the U.S. has roughly 14%.
At the time, the price to mine 1 BTC was roughly $5,000. The Bitcoin price revisited $11,000 in late July and hasn’t fallen below that threshold in August, according to CoinMarketCap data.