The Bitcoin sector has grown beyond bitcoin as a digital currency to concentrate more on its underlying technology. Blockchain technology, the distributed ledger technology that records and confirms all transactions happening over the bitcoin network is proven to be capable of doing much more than that. The use of blockchain technology to maintain and manage records, fiat transfers, trade settlements are few of the long list of things bitcoin is currently focused on.
There are many startups and established companies that are working in this sector and a decent number of them are backed by venture and investment funds. However, amid all this rush, the main player responsible for maintaining the bitcoin network are forgotten. Until now, there has not been a dedicated fund focusing towards bitcoin mining.
Genesis Mining, the bitcoin mining company has recently announced the launch of the first bitcoin mining fund. This new fund is called Logos Fund and it will be investing in bitcoin mining hardware-based businesses. The company has registered the Logos Fund with US Securities and Exchange Commission last month. The Logos Fund is currently worth $1 million after Genesis Mining contributed the amount as seed money to Logos Fund. the fund is expected to grow as more investors start pooling money into it.
The CEO and co-founder of Genesis Mining, Marco Streng has mentioned on Reuters that the investors have expressed their interest in contributing around $100 million to the Logos Fund. As the difficulty level increases, miners will be needing more powerful hardware to maintain the profitability of their mining operations. This influences bitcoin hardware manufacturers to design and develop more powerful miners.
Miners are an important part of bitcoin network and as long as bitcoin exists, the requirement for miners will continue to exist. Logos Fund can be expected to start investing in few bitcoin hardware businesses soon.