Xolaris has launched a European private-equity fund focused on Bitcoin mining. The timing of the launch comes as a surprise to many experts, mainly because of Bitcoin’s market price going down. Nevertheless, the German investment firm Xolaris intends to raise between 34 and $57 million for the project’s 4-year period.
Xolaris CEO, Stefan Klaile said that the company was asked numerous times in the last few years to create a regulated product in the crypto and digital currency sphere. Many professional investors wanted to know if Xolaris has plans to launch such a service in the near future. Now that it’s live, the minimal entry investment fee is $285 000.
This new European fund is a joint venture between Xolaris and Marc Stehr. Stehr owns a 2000-supercomputer mining farm in Sweden. A small portion of the fund’s capital will go to the mining farm in Sweden. The goal is to further modernize and expand the already massive mining facility.
Xolaris are launching two Bitcoin Mining Equity Funds
When asked why he chose to partner up with Stehr, Klaile stated:
“Our company had to look long and hard at many factors. We wanted to do the best for our customers so we decided to go with Stehr. He owns a large mining infrastructure, which has already proven to mine Bitcoin successfully. I believe that with his sound reputation and impressive infrastructure, we’ve made the right choice and already eliminated several risks”
Another big advantage of Stehr’s mining farm is the location. Sweden has a cooler climate and very affordable electricity costs. The country’s political climate is also beneficial for the Crypto environment. Sweden is making great progress into becoming a cashless society and Digital Currencies will play a major role in that endeavor.
After the subsidy for Norwegian miners was stopped by their government, many miners are considering relocation to Sweden.
Xolaris is however, not interested in settling down only in Europe. A second fund is planned to launch. The $50 million Bitcoin mining fund in Hong Kong will be targeted only towards Asian investors. Klaile said that the subscribtions for the Asian fund would start later this month, after it rolls out its flagship European fund. Klaile actually believes the market is favorable for him since the rough conditions will scare away most of the competition.
Klaile remains optimistic about the funds’ development and says that the current market downturn doesn’t necessarily have to stop everything in place. He believes miners are long-term investments and the proof of that is the large amount of wealth which was accumulated over the past 5 years.
- Security Token Offering (STO) Guide: Everything you need to know about STOs - Feb 28, 2019
- Coinbase Pro is adding Ripple (XRP) support for trading - Feb 27, 2019
- Top ICOs of 2018: Initial Coin Offerings that beat the Crypto Bear’s market - Feb 26, 2019
- Ethereum hard forks Constantinople and St. Petersburg scheduled by the end of the week - Feb 25, 2019
- Ethereum founder and CEO, Vitalik Buterin revealed his non-Ether holdings and revenue sources - Feb 22, 2019
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.