Realio, a technology ecosystem for institutional-grade digital assets, has announced the launch of Liquid Mining Fund I through a partnership with Valentus Digital. The tokenized fund generates yield through a revenue stream of newly mined Bitcoin (BTC) by investing in immersion-cooled facilities that produce new BTC at the lowest cost possible.
With Bitcoin “halving” its rewards for mining every four years, miners are constantly looking for ways to produce more of the world’s largest cryptocurrency as cheaply as possible while trying to keep up with its famed inflation-control mechanism. Thirty percent of miners shut down their operations as the 2020 halving event took place and their business turned unprofitable, according to Bitcoin.com. Having stable access to cheap energy is crucial as mining becomes more resource-intensive than ever.
Initially capitalized by principals of both Realio and Valentus Capital Management, Liquid Mining Fund I has already sourced opportunities and deployed capital into Project Rhodium as its first investment, a Bitcoin mining company which has secured low-cost energy. Realio will wrap the fund with digital tokens that provide holders with the rights to revenue generated in newly mined BTC and made available on the Realio platform.
“The vision for this project is to create a tradable investment token that generates yield through liquid-cooled Bitcoin mining, wrapped inside a decentralized liquidity pool,” says Derek Boirun, CEO and Founder of Realio. “As a real-estate-focused platform, the strategy is a great fit for Realio. Bitcoin-mining facilities are similar to data centers, and the business model makes sense to real estate investors.”
“Realio provides de-risked infrastructure, and Liquid Mining Fund provides predictable, consistent cash flows from liquid-cooled BTC,” says Nicholas Cerasuolo, Rhodium Principal and Advisor to Realio. “The full stack should give institutional investors the confidence needed to step into the digital asset space with relatively low risk and nearly zero effort on their part. It is a bigger risk not to have 1 percent of your portfolio allocated to digital assets at this point, especially given the macroeconomic conditions.”
“The unique structure of this type of deal effectively removes the extreme price volatility associated with cryptocurrencies and Bitcoin,” says Behzad Taufiq, CIO and founder of Valentus Capital Management. “Price volatility has been one of the major roadblocks for many investors looking to enter this space. Scalable and low-cost mining allows investors to achieve positive returns, even if the Bitcoin price falls from current levels.”