Digital Currency Group’s latest move is set to revolutionize the cryptocurrency mining landscape with the spin-off of its self-mining unit, Fortitude Mining. This new venture aims to expand cryptocurrency mining operations by investing in and operating high-return tokens.
Digital Currency Group Spins Off Crypto Mining Subsidiary Fortitude From Foundry
New Venture Aims to Expand Cryptocurrency Mining Operations
Crypto mining operations involve the use of powerful computers to solve complex mathematical equations, validating transactions on a blockchain and releasing new cryptocurrency.
This process is energy-intensive and requires specialized hardware, such as graphics processing units (GPUs) or application-specific integrated circuits (ASICs).
According to a report by Cambridge University, the global crypto mining market size was estimated at $16.8 billion in 2020.
The largest mining countries are China, the United States, and Russia, with the majority of miners operating in data centers.
Digital Currency Group (DCG) has announced the spin-off of its self-mining unit from its Foundry subsidiary, creating a new business called Fortitude Mining. This move is expected to provide greater growth opportunities for the company.
Fortitude mining is a type of cryptocurrency mining that focuses on 'energy efficiency and low operating costs.'
It typically involves the use of specialized hardware, such as ASICs or GPUs, to mine cryptocurrencies like Bitcoin or Ethereum.
According to a study by the University of Cambridge, in 2020, around 65% of all Bitcoin mining was done using renewable energy sources, making it an attractive option for environmentally conscious miners.
Fortitude Mining will focus on venture mining, which involves investing in and operating cryptocurrency mining operations. The business will not only mine ‘bitcoin (BTC)’ but also other proof-of-work protocols, with a particular emphasis on high-return tokens. This approach sets Fortitude apart from traditional mining operations, which often concentrate on a single asset.
Venture mining refers to the process of extracting valuable minerals, metals, or other geological materials from the earth.
It involves exploring for mineral deposits, assessing their economic viability, and developing a plan for extraction.
This type of mining is often associated with high-risk, high-reward ventures due to the uncertainty of finding profitable deposits.
According to the International Council on Mining and Metals (ICMM), venture mining accounts for approximately 20% of global mining production.
Leadership and Strategic Partnerships
Andrea Childs, previously the senior vice president of operations and marketing at Foundry, has been appointed CEO of Fortitude Mining. Mike Colyer will continue to lead Foundry as its CEO, providing digital asset infrastructure to the crypto ecosystem. ‘Barry Silbert, founder and CEO of DCG, stated that spinning out Fortitude Mining will enable the business to scale further by raising capital, making additional investments, and attracting top-tier talent.’
DCG is currently seeking strategic partners, including venture capital firms, to invest in Fortitude. According to ‘Childs, there has been interest from potential investors in both equity and debt’ . The company plans to reinvest its cash flows into new hardware and site acquisitions in 2025, with a highly efficient mining fleet already in place.
Expansion of Cryptocurrency Mining Operations
The creation of Fortitude Mining marks an important step for DCG in expanding its cryptocurrency mining operations. By focusing on venture mining and investing in high-return tokens, the company aims to increase its market share and contribute to the growth of the cryptocurrency industry. As the demand for digital assets continues to rise, ‘Fortitude Mining is well-positioned to capitalize on this trend and become a major player in the crypto mining landscape.’
