Fund Manager Xolaris Service KVAG Launches Private Equity Fund Dedicated To Bitcoin Mining
In a press release unveiled on November 29, the alternative investment fund manager Xolaris Service KVAG launched a new private equity fund. It is important to mention that the private equity fund is dedicated to Bitcoin mining.
According to the company, the decision was taken due to an increased client demand to access the sector. This increased demand comes in a year in which virtual currencies are in a bear market. The company has also opened a Hong Kong office back in July.
In order to invest in this fund, investors would need to have a minimum of €250,000. The firm is also planning an issue volume between €30 million and €50 million. The product is also related to a joint project that is being carried out by Marc Stehr, the owner of an extant mining farm located in Sweden.
The head of portfolio management Stefan Klaile, commented on the issue:
“We’ve constantly received requests from professional investors to release a regulated product for the cryptocurrency sphere.”
During Bitcoin’s price drop during the year down to $3,500, the crypto mining market has also experienced its consequences. Several miners had to stop operating due to high difficulty rates, increased electricity prices and Bitcoin under $4,000.
Since its all-time high in August, the hash rate in the Bitcoin network went down around 40%. Only the most efficient miners remain operating in the market, while those with more expenses and inefficient systems and hardware have been eliminated from the space.
However, there are new projects that are starting to gain shape in the mining space such as the one that Xolaris has or another crypto mining farm that is going to be set up in Paraguay.