Bitcoin Mining Investment Funds Launched By German Firm Xolaris

Investing, News | December 3, 2018 By:

Germany-based investment firm Xolaris has created a new European private-equity fund that will focus on bitcoin mining.

Founded in 2010 by Stefan Klaile, Xolaris is an alternative investment funds manager (AIFM) registered with the German Financial Supervisory Authority (BaFin) since 2014. It designs and manages alternative investment funds (AIF) for third parties in line with the German investment law (KAGB).

Xolaris’ new private-equity fund is a joint venture with Marc Stehr, owner of a Sweeden based 2,000-supercomputer mining farm. The fund will invest in building infrastructure and acquire new hardware for different crypto mining projects, with some of the fund’s capital going towards expanding Stehr’s mining farm in Sweden.

The European fund has a minimum investment entry of $285,000. The firm is hoping to raise between €30 million ($34M USD) and €50 million ($56M USD) for its four-year project.

Klaile said that they decided to create the fund after receiving requests from professional investors to release a regulated product for the cryptocurrency market. Klaile added that they partnered with Stehr because he already has an existing mining infrastructure in his project that has already proven to be producing bitcoins successfully, which means “several risks have already been eliminated.”

“For our fund, we see the current price decline in bitcoin rather positively,” said Klaile. “Bitcoin mining return is affected by a combination of drivers including bitcoin price levels, hashrate, mining difficulty and the price of mining equipment such as servers. We see recent developments as giving [our mining farm operator] the opportunity to increase market share.”

Xolaris is also preparing to launch a $50 million bitcoin mining fund in Hong Kong targeting Asian investors. Klaile said that subscription for the Asian fund would start this month.

“As private equity, we are financing real assets, which is the mining infrastructure and data centre that our funds invest in,” Klaile said. “The success of our funds and mining farm is dependent on bitcoin performance. But just like the car industry, a car maker does not stop building cars just because the market for used cars has once collapsed.”