Digital Currency Group (DCG), a major player in the U.S. cryptocurrency sector, announced on August 27th the establishment of its new subsidiary, Foundry, marking its official entry into the mining industry. DCG has committed to investing over $100 million in Foundry by 2021.
Foundry's Three Core Services
Founded in 2019, Foundry was created to address institutional needs and improve capital access, market efficiency, and transparency in the digital currency mining and staking sectors. Leveraging DCG's institutional-grade expertise, capital, and market intelligence, Foundry provides North American Bitcoin miners and global manufacturers with the resources needed to build, maintain, and secure decentralized networks.
According to Business Wire, since its inception, Foundry has facilitated tens of millions in equipment financing for mining firms and assisted in procuring nearly half of the Bitcoin mining hardware delivered to North America this year. It has now become one of the largest Bitcoin miners in the region.
Foundry's services are divided into three main categories:
- Equipment Financing and Procurement: Offering capital solutions for mining hardware.
- Mining and Staking Services: Supporting decentralized network operations.
- Consulting Services: Helping clients optimize their mining strategies.
The company aims to collaborate closely with energy providers and governments to shape sustainable mining practices.
"We aim to empower decentralized infrastructure in the new digital economy. Our work will support the growth of mining operations, particularly in North America," said Foundry CEO Mike Colyer.
Key partners like Bitmain and MicroBT have expressed plans to strengthen collaboration with Foundry to expand their market presence.
Is Mining a Lucrative Business?
DCG, founded by Barry Silbert in 2015, is a New York-based enterprise that builds, acquires, and invests in blockchain companies globally. With stakes in over 160 companies, DCG’s portfolio includes well-known subsidiaries like:
- Grayscale Investments
- Genesis (a cryptocurrency prime broker)
- CoinDesk (a blockchain media outlet)
Foundry is DCG’s fourth subsidiary and its first dedicated venture into mining.
"Mining is proving to be a lucrative sector, attracting even DCG to stake its claim," remarked an industry insider.
Growing hash rates reflect the sector's robust health. Data from TokenView shows Bitcoin’s network hashrate has rebounded to pre-halving levels, maintaining a long-term upward trend.
While China remains the global hashrate leader, its dominance has declined from 75.62% in September 2019 to 65.08% in April 2020. Meanwhile, the U.S. saw its share rise from 4.06% to 7.24% during the same period (per Cambridge Centre for Alternative Finance).
MicroBT reported a 40% surge in overseas orders, particularly from North America and Europe. Recent bulk purchases by North American firms like Core Scientific and Riot Blockchain further highlight the region’s growing mining activity.
DCG’s strategic move into mining via Foundry stems from years of market analysis. The subsidiary’s success—and potential to disrupt the mining landscape—remains to be seen.
FAQ Section
1. What is Foundry's primary objective?
Foundry aims to enhance decentralized infrastructure by providing capital, equipment, and expertise to Bitcoin miners and staking participants, particularly in North America.
2. How significant is DCG’s investment in Foundry?
DCG has pledged over $100 million in Foundry by 2021, underscoring its commitment to the mining sector.
3. Which regions are seeing increased Bitcoin mining activity?
North America’s share of global Bitcoin hashrate grew from 4.06% to 7.24% between 2019 and 2020, while China’s dominance slightly declined.
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4. What services does Foundry offer?
Foundry specializes in equipment financing, mining/staking services, and strategic consulting for industry players.
5. How does Foundry plan to collaborate with governments?
Foundry intends to work with energy providers and policymakers to develop sustainable mining frameworks.
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6. Why did DCG enter the mining industry now?
After years of market observation, DCG identified mining as a strategic growth area, leading to Foundry’s launch.