Grayscale, the US-based crypto asset management firm, has decided to take advantage of the low prices surrounding the crypto mining industry. In recent months, the overall crypto sector valuation has dropped under the trillion-dollar mark in the backdrop of the US’ interest rate hikes leading to market pressure amid other reasons. Grayscale Digital Infrastructure Opportunities (GDIO) has decided to team up with staking infrastructure firm Foundry as part of its decision.
Crypto miners have been hit by shrunken profit margins after the prices of Bitcoin and other cryptocurrencies slashed substantially. Meanwhile, the power costs in several parts of the world rose in recent times, which too heavily impacted the crypto mining business.
As per a Bloomberg report, Bitcoin miners lost over $1 billion (roughly Rs. 8,200 crore) during the recent crypto crash.
“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,” a Coindesk report quoted Grayscale CEO, Michael Sonnenshein, as saying.
Meanwhile, Grayscale is not the only crypto player hoping to expand their mining teams and infrastructure. In September, crypto billionaire Jihan Wu reportedly set up a $250 million (nearly Rs. XXX crore) fund to buy crypto mining machines from distressed sellers. Wu is the founder of blockchain firm Bitmain.
The financial situation in the crypto mining sector led to concern-worthy situations for many players.
In June, the CEO and CFO of Compass Mining, a Bitcoin hardware mining company, stepped down from their respective positions. At the time, the company was facing allegations of not clearing utility bills at a facility in Maine, US.
The potential of the crypto sector, however, remains to appear promising. Last year, the market valuation of the crypto industry had surpassed the mark of $3 trillion (roughly Rs. 2,46,60,900 crore).
Hence, tech giants are not giving up on developing energy-efficient technologies to make crypto mining more lucrative.
Samsung, for instance, is moving briskly towards completing the development of its three nanometre (nm) foundry processing chip, that would be able to facilitate the mining of Bitcoin.
Samsung is making its chip as a ‘gate-all-around (GAA)’ offering. This essentially means that these chips will have current gates on all four surfaces, allowing more precise current control. This could increase the efficiency of BTC mining by 30 percent.
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