The establishment of Russia’s first investment mutual fund dedicated to financing cryptocurrency mining operations is underway. According to a Russian press report, it will be available to qualified investors and will finance the acquisition of coin minting equipment.
Russian Crypto Mining Sector Will Attract Shareholders Through Investment Fund
Work has started to establish the first mutual fund for investments in crypto mining companies in Russia, business daily Kommersant reported. It will operate as a venture fund for the purchase of mining hardware through a special entity that will then lease the equipment.
The new closed fund will be set up by Finam Management, which will register it in the specialized depository in March, the article details. Only qualified investors will have access, with a minimum threshold of 300,000 rubles (almost $4,000).
The company intends to raise 500 million rubles (more than $6.6 million) before incorporating the leasing firm, Finam CEO Vladislav Kochetkov explained. Part of the money will be used to buy mining machines and the rest will be spent on paying for electricity and maintaining the fund.
The project is a unique offer for Russia, the publication noted. Management companies have previously created mutual funds focused only on companies developing blockchain technology. In 2021, some tried to register funds for cryptocurrencies and their derivatives, but the Bank of Russia prohibited the inclusion of foreign crypto assets in Investment funds.
Crowd investment market participants believe, however, that after the last year of sanctions, the monetary authority is likely to soften its stance on at least some cryptocurrency-related activities, such as mining, and approve the launch of the fund. . Artem Mayorov, head of Ingosstrakh-Investments’ asset management department, told the newspaper that if that happens, his management company will launch one as well.
Bitriver, the leading Russian mining operator and hardware hosting service provider, revealed that there has been a large increase in interest from Russia’s largest banks, investment companies and management firms since Q4 2022. Alexander Baryshnikov , its head of digital development of the project, elaborated:
We are in the final stages of negotiations on the organization of a series of funds related to investments in industrial mining.
The growing attention to crypto mining has been attributed to the sharp reduction in investment opportunities in the domestic financial market, as well as the potentially high profitability of mining investments. Russia has certain advantages as a mining destination, including low-cost energy and a cool climate. A bill regulating the industry is under review in the lower house of the Russian parliament.
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