German Company Xolaris Launches Two Bitcoin Mining Investment Funds

by | Dec 3, 2018 | Bitcoin, Cryptocurrency News, Mining

Xolaris | Bitcoin mining | Investment Fund | Sweden | Germany

Xolaris, a German investment firm launches a European private-equity fund focused on bitcoin mining. A joint venture with Marc Stehr, owner of a Sweeden based 2,000-supercomputer mining farm, the fund is expected to raise  $34 million to $57 million for the four-year project.

press release elaborates more details about the fund, it has a minimum investment entry of $285,000. Stefan Klaile, the CEO of Xolaris Says:

“Professional investors kept asking us to create a regulated product in the area of cryptocurrencies.”

Some of the funds’ capital will be dedicated to expanding the data centre in Sweden. Klaile said:

“We decided on the joint product with Marc Stehr, because Mr. Stehr already has an existing mining infrastructure in his project that has already proven to be producing bitcoins successfully.That means several risks have already been eliminated.”

According to Xolaris, Sweeden’s cooler climate and cheaper electricity rate, make the country a perfect location for bitcoin mining farm. On top it, Sweeden political environment could be supporting the cryptocurrency ecosystem soon, under their rapid progression towards being a cashless economy.

Notably, Sweeden has become a hot spot in regards with the bitcoin miners as some Norwegian miners are considering to relocate after their government scrapped the tax subsidy on the electricity that was levied on bitcoin miners.

The Second Fund

A separate $50 million bitcoin mining fund is in pipeline that will be based in Hong Kong and will target Asian investors. Klaile said that this fund will initiate in December after the flagship European fund is rolled out. Unfazed by the current bear that has encaptured the crypto market, he, in fact, sees this as an advantageous scenario for his firm because as the bear eliminates competition.

Klaile told the South China Morning Post.

“We see the current price decline in bitcoin rather positively. Bitcoin mining return is affected by a combination of drivers, including bitcoin price levels, hashrate, mining difficulty, and the price of mining equipment such as servers. We see recent developments as giving [our mining farm operator] the opportunity to increase our market share.”

He adds that though the success of his fund’s success depends on BTC’s performance. The current bear should not dictate every decision as this is a temporary market downturn. He said:

Just like the car industry, a car maker does not stop building cars just because the market for used cars once collapsed.”

Read more: Only Bitcoin Is Pure Digital Gold, Says An Ex-Executive Of JP Morgan

 

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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