Max Keiser's Bitcoin Capital Raises $1.6m via Crowdfunding
Max Keiser's crypto fund Bitcoin Capital has closed a $1.6m crowdfunding round.
Max Keiser's crypto investment fund Bitcoin Capital has closed a $1.6m equity crowdfunding round.
Describing itself as "high risk, high return", Bitcoin Capital will invest funds in mining, early-stage startups and cryptocurrencies, with daily dividends paid out in bitcoin.
As part of the deal, 684 qualified investors will receive 50% equity in Bitcoin Capital. Alongside Keiser, the fund will be co-managed by Simon Dixon, a former investment banker and co-founder of crowdfunding platform BankToTheFuture, which hosted the campaign.
Dixon detailed the company's plan in an interview with Keiser, saying:
Mining profitability concerns
Bitcoin Capital's launch comes amid growing concerns about declining profitability for bitcoin miners. With the price remaining stagnant, miner's profits have dipped while their overheads, such as electricity costs, stay the same.
To achieve economies of scale requires a serious amount of money. HaoBTC's multi-petahash facility in the Tibetan mountains runs over 10,000 Antminer s3 units – each worth approximately $130 –resulting in a minimum investment of $1.3m into hardware alone.
Though big players like KnCMiner continue to grow, closing a $15m series B funding round in February, others have been forced out of the market. CEX.io announced the suspension of its cloud mining activities in January, citing lack of profitability.
Speaking to CoinDesk at the time, CIO Jeffrey Smith noted the move was temporary and that operations would resume if bitcoin's price surpassed the $320 mark. At the time of press, bitcoin's price stood at $230.23.
Image Credit: Stacy Herbert / Flickr
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.