Bitcoin Mining Fund to Be Established by JKL Group After Launch of US Business Operations

Leveraging the firm’s expertise in asset management and Bitcoin Mining, JKL Group is set to raise “a $50M mining infrastructure fund from family offices, HNWI, and institutional investors active in the digital assets space.”

JKL Group is reportedly “the first APAC headquartered digital asset management firm to set up a US-based Bitcoin mining operation.” The launch of JKL’s hosting facility with a starting capacity of 35MW was “announced during their appearance at Mining Disrupt conference earlier this year.”

At the same time, JKL claims it has “witnessed growing interest for Bitcoin mining coming from the firm’s existing clients, who are looking for a way to diversify their digital asset exposure.” To satisfy this demand, JKL Group is “launching a Bitcoin Infrastructure Fund and bringing Bitcoin mining to institutional investors.”

$40M of the mining infrastructure fund will be “raised from external investors. JKL Capital – group’s financial arm – is set to allocate another $10M in a junior tranche, committed to absorb first losses.”

Fund’s investment strategy “includes acquisition of Bitcoin mining machines at the current bear market prices and their further deployment through JKL Mining network.”

JKL Group’s CEO Lin Cheung said:

“Digital assets mining provides an unparalleled opportunity to investors in terms of diversification and upside beta exposure to the cryptocurrency space.”

Lin added:

“On the one hand, Bitcoin mining delivers a stable future cash flow dictated by the algorithm of bitcoin blockchain, which provides a solid baseline for valuation. On the other hand, the ROI of cryptocurrency mining mostly depends on 4 variable factors: price of equipment, electricity rates, digital asset output and price of the mined cryptocurrency. While these factors can be volatile, it is also up to the investor to determine at what profitability levels to switch the miner on & off, securing the upside exposure.”

JKL Group was “founded in 2017 by a team of seasoned professionals with backgrounds in traditional finance and expertise in global financial markets, asset management and quantitative investment strategies.”

The group’s competitive edge is “its end-to-end digital asset expertise, covering quantitative trading, lending, OTC services and Bitcoin mining.”

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