Iceland’s Genesis launches first bitcoin mining fund

Physical bitcoins. Credit: Flickr/Antana

Genesis Mining, which provides computer equipment to create bitcoins in the cloud, on Thursday launched the world’s first fund that invests in hardware used to create the digital currency.

Bitcoins are created through a “mining” process involving computer algorithms on equipment owned or rented out by companies such as Iceland-based Genesis. Bitcoins, which are worth more than $400 each, can be purchased from trading exchanges such as BitStamp and Kraken.

The Logos Fund was registered with the U.S. Securities and Exchange Commission last week,Genesis said in a statement. The fund will issue “pooled investment fund interests” to investors in an offering expected to last more than a year.

Genesis will initially seed the fund with $1 million of its own capital, co-founder and Chief Executive Marco Streng said, adding that investors have expressed an interest in putting in $100 million.

The mininum investment for the fund is $25,000.

“The fund would be clearly focused on bitcoin mining, but we can also purchase bitcoins directly from the exchanges,” said Streng said in an interview.

Streng cited strong investor interest despite challenges facing the sector, whose profits have been pressured by growing competition.

More than $1 billion has been invested in bitcoin-related startups since 2013.

Bitcoin on Thursday traded at $416.01 on the BitStamp platform, down 1.8 percent.

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Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.