Shanghai-based Fundamental Labs — the blockchain fund manager that has invested in Binance and Coinbase — has announced that it will be spending US$44 million on up to 30,000 units of the latest model of Bitcoin miners that will operate in China, according to CoinDesk.
Howard Yuan, Managing Partner of Fundamental Labs, revealed, “Mining is the fundamental block to support the whole crypto ecosystem. That’s why we invest in mining farms, equipment and pools and participate in mining ourselves.”
Rather than buying second-hand equipment or cheaper models, the company is shelling out as much as US$2,000 per unit for the latest mining models made by big names, such as InnoSilicon, MicroBT, and Bitmain.
According to Yuan, the firm was established in 2016 and has expanded its total portfolio currently valued at more than US$500 million. Some of its holdings are in equity on Coinbase and BNB tokens issued by Binance.
“We think crypto mining will become more institutionalized in the future,” Yuan said. “It’s crypto capitalism. Retail miners will be gradually squeezed out because of challenges like price volatility and increasing computing difficulties.”
With this effort in the crypto mining industry, experts predict that Bitcoin’s total hash rate will increase in line with mining activities.
As the latest mining equipment can compute up to 50 or 70 trillion hashes per second, Fundamental Labs’ new miners could boost the Bitcoin network’s total hash rate by a minimum 1,000 quadrillion hashes per second or 2%.
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