Russia is preparing to welcome its first investment fund for financing crypto mining operations. Local media report that this fund will be set up to accommodate qualified investors and will allow the acquisition of equipment necessary for mining. Several investors are therefore expected to expand the Russian mining sector.
The start of the work is confirmed
According to the Russian business daily Kommersant, the first mutual investment fund is about to be launched and installation work has already begun. This fund will finance companies by allowing them to acquire crypto mining equipment.
It is a crypto-focused venture capital fund that will have a simple operation: the entity set up takes care of buying mining equipment and then making it available to mining companies. in the form of rental.
Finam Managementthe company behind the project, will register it in March 2023. It has restricts access to qualified investorshaving a minimum capital of 300,000 rubles, or almost $4,000.
During the future fundraising she plans, Finam Management plans to raise 500 million rubles, or $6.6 million. This was stated by Vladislav Kochetkov, the CEO of Finam Management. He added that part of the money will be used to buy mining machines. The rest of the funds will be used to cover maintenance costs such as electricity, for example.
A first in Russia
This is the very first time that such a project will be implemented in Russia. In the past, there have been mutual funds created by management companies. However, these concerned only the investments in companies that develop blockchain technology.
There have already been attempts to create an investment fund for cryptocurrencies and their derivatives, especially in 2021. However, they were unsuccessful due to the ban on including foreign crypto-assets of the Bank of Russia.
This new initiative comes in a context where the country is in the abyss of economic sanctions, which should soften the banque central on certain activities in the crypto industry.
Several players are watching the central bank’s reaction carefully. If it becomes more flexible, it will encourage other companies to start. This is the opinion of the director of the asset management department of the company Ingosstrakh-Investments, Artem Mayorov.
Another report from the leading Russian mining operator and hardware hosting service provider, Bitrivershow that the interest of major Russian banks in the crypto sector has increased recently. This is the same interest shared by Russian investment companies and management companies.
One thing is certain, the interest of the main financial players in Russia is growing regarding investments in crypto-currency mining. The causes of this interest can be a sharp drop in investment opportunities in the national financial market and the high profitability what crypto mining offers.
Besides, Russia has ideal conditions for cryptocurrency mining. In particular, it has a cold climate and the cost of energy is quite low. In view of these elements, the lower house of the Russian Parliament is currently examining a regulatory law for the crypto mining industry.