Hong Kong-based digital asset management firm JKL Group will set up a US$50 million fund to buy more mining machines to further expand its mining facilities, despite the current crypto winter.
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- Some US$40 million of the fund will be raised from family offices, high net-worth individuals and institutional investors, according to the press release. It has allocated another US$10 million in a junior tranche that will bear the brunt of initial losses.
- The JKL Group operates businesses in crypto finance and crypto mining. In July, the firm established its first bitcoin mining facility in Texas, US that houses over 10,000 machines, and became the first APAC-based digital asset firm to set up a US-based Bitcoin mining facility.
- The CEO of JKL Group, Lin Cheung, said that turning on and off mining machines is also a factor to ensure the investment has an “upside exposure”, despite the profitability of crypto mining that is typically dependent on equipment price, electricity costs, crypto output and prices of mined crypto.
- Amid a bearish crypto market and surging energy prices, bitcoin miners are seeing their lowest level of profitability ever, showed data from crypto mining services firm Luxor Technologies.
- Bitcoin’s hash rate rose to its highest on October 11, according to crypto data provider Y Chart.
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