Key Takeaways:
- A crypto Mining Investment Fund Will Be Established in Russia
- The operating guidelines for a new closed-end mutual fund that will profit from bitcoin mining will be registered by Finam Management.
- The lowest investment required to access the fund is 300,000 rubles, or roughly $4,500.
The Russian market may witness the first closed-end investment fund specialising in mining company assets.
According to Russian business publication Kommersant, the new mutual investment fund will be open to market participants who can invest a minimum of 300,000 rubles (roughly $4,000).
Russia consented to legalising bitcoin mining in energy-rich regions last September. The recommendations were expected to assist data centre operators and developers in providing investors with increased hardware uptime.
The funds will be used to buy cryptocurrency mining equipment and cover the cost of electricity and other operating expenses.It will be purchased through a unique corporation and operate as a venture fund. Hardware for mining, then leasing it. In March, the fund will be filed with a licensed custodian.
A Moscow-based financial holding company called Finam Management will launch the new closed-end fund. Vladislav Kochetkov, the CEO of Finam, said that the company intends to collect close to $6.6 Million before launching the business. The money will go towards paying electricity expenses, maintaining the fund, and buying mining equipment.
The newly formed business won’t be directly engaged in mining; instead, it will rent the machinery, whose cost will depend on the price of bitcoin.
Vladislav Kochetkov stated, “The first tenant already exists; this is a hosting business for mining.”
The deal from Finam is exclusive to the Russian market. Management firms (BCS, Pervaya) only produced joint funds targeted at businesses engaged in the development of blockchain technology.
The launch of the fund is still awaiting Russian regulatory clearance, according to Kommersant. The central bank has “easened its attitude” towards crypto mining, according to the report, and market analysts think there is a decent possibility the fund will be authorised.
It’s crucial to remember that around this time last year, demand for mining equipment fell in Russia due to worries about a potential ban. Due to the severe lack of investment options in the local financial sector and the potential high profitability of mining endeavours, interest in cryptocurrency mining has grown.
It’s noteworthy that numerous significant Russian institutions have expressed interest in mining operations.
As a mining location, Russia offers a number of advantages, including affordable electricity and a pleasant atmosphere. The lower house of the Russian parliament is debating a bill to regulate the industry.
