HONG KONG, Oct. 19, 2022 (GLOBE NEWSWIRE) — Leveraging the firm’s expertise in both asset management and Bitcoin Mining, JKL Group is set to raise a $50 million mining infrastructure fund from family offices, HNWIs and institutional investors active in place of digital assets.
JKL Group is the first APAC-headquartered digital asset management firm to set up a US-based Bitcoin mining operation. The launch of JKL’s host facility with an initial capacity of 35MW was announced during their appearance at the Mining Disrupt conference earlier this year.
At the same time, JKL has seen growing interest in Bitcoin mining from the firm’s existing clients, who are looking for a way to diversify their exposure to digital assets. To satisfy this demand, JKL Group is launching a Bitcoin Infrastructure Fund and bringing Bitcoin mining to institutional investors.
$40 million of the mining infrastructure fund will be raised from external investors. JKL Capital – the group’s financial arm – is set to allocate an additional $10 million in a junior tranche, committed to absorb initial losses. The fund’s investment strategy includes the acquisition of Bitcoin mining machines at current bear market prices and their further distribution through the JKL Mining network. Contact [email protected] for detailed information about their new fund.
“Digital asset mining provides an unprecedented opportunity for investors in terms of diversification and beta exposure to the cryptocurrency space,” said JKL Group CEO Lin Cheung.
“On the one hand, Bitcoin mining delivers a stable future cash flow dictated by the algorithm of the bitcoin blockchain, which provides a solid baseline for valuation. On the other hand, the ROI of cryptocurrency mining largely depends on 4 variable factors: price of equipment, electricity prices , output of digital assets and the price of the mined cryptocurrency. While these factors can be volatile, it is also up to the investor to decide at which profitability levels to turn the miner on and off, ensuring the upside exposure, Lin added.
JKL Group was founded in 2017 by a team of experienced professionals with a background in traditional finance and expertise in global financial markets, asset management and quantitative investment strategies. The Group’s competitive advantage is its end-to-end expertise in digital assets, covering quantitative trading, lending, OTC services and Bitcoin mining.
Visit the JKL Group website to find out more about their digital asset fund and mining facility.
A video accompanying this announcement is available at:
