Hong Kong-based Bixin Global, a cryptocurrency-focused company, has introduced what it calls a “fund of funds” (FOF), which has been financed with 6,600 Bitcoin (BTC), an amount valued at more than $65 million at the time of writing.
As mentioned in a May 8, 2020, company announcement, Bixin established the fund in order to make strategic investments in digital asset funds, internationally. The company explained that its FOF is Bitcoin-denominated and its primary purpose is to increase the company’s BTC holdings.
Bixin’s management noted that the funds it will be investing in will focus on quant-based methods and strategies. They added that the firm is planning to partner with other industry players in order to launch cryptocurrency mining operations, which will include cloud mining and the funding of mining operations.
Established in 2009, Bixin offers financial services to digital asset companies including those operating in the lending sector. It also assists crypto exchanges and escrow services.
Bixin’s digital currency mining facilitates use around 300 megawatt-hours of electricity. They generate approximately 3,000 petahashes of computing power, which is about 2.5% of the BTC network’s overall hashrate.
After the historic March 12-13, 2020 Bitcoin (BTC) market crash, which saw the cryptocurrency’s price drop 50%, there has now been a steady increase in digital asset funds. This, as investors may be trying to use virtual currencies to hedge against the instability of the traditional financial system due to COVID-19.
The Bitcoin price recently surged past the $10,000 mark as we get closer to the BTC halving event, when the cryptocurrency’s supply will be reduced by 50%.
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