One of the biggest bitcoin and ethereum mining datacenter in the United States, Core Scientific, has partnered with a $5.3 billion hedge fund, Horizon Kinetics LLC.
Horizon describes itself as an independently owned and operated investment adviser adhering to a long-term, contrarian, fundamental value investment philosophy.
They have now invested in cryptos, tripling the number of miners it hosts with Core Scientific.
“We are excited to see more leading institutional investors like Horizon Kinetics expand their investment exposure to include digital assets, in particular cryptocurrency mining,” Taras Kulyk, the new Senior VP of Blockchain Business Development for Core Scientific, said before adding:
“Given the massive increase in attention the digital asset sector is experiencing, over the next few months I will be leading Core Scientific’s effort to onboard an increasing number of institutional players; in essence, providing a stable, North American-based mechanism for sophisticated investors to gain direct exposure to this rapidly maturing asset class.”
Core Scientific mines bitcoin, ethereum as well as other GPU based coins with one of their former senior employee being the chief driver of ProgPoW, a failed proposal to change ethereum’s mining algorithm.
They have vast premises in the United States (pictured), including hydro power plants, as well as a partnership of sorts with Nvidia and potentially Bitmain as well which produces Antminer S19 and S19 Pro models.
The revelation of this hedge fund partnership is interesting because it suggests some are choosing direct investment in bitcoin mining instead of buying it.
However, mining has different considerations from just buy and hold or trade as the number of miners in the network can affect ones profits and can make mining investments obsolete unless one constantly keeps up with new asics.
Most institutional investors therefore have stayed clear of that area, but this investment by Horizon might mark the beginning of more institutional investors considering mining based purchases of bitcoins or eth as an option.