Grayscale’s new co-investment vehicle aims to “capture the silver lining of the crypto winter.”

According to the announcement, the co-investment vehicle is called Grayscale Digital Infrastructure Opportunities (GDIO), and crypto-currency mining company Foundry will handle operations for the new product. GDIO is intended to “Capturing the rise of the crypto winter“, according to Grayscale’s announcement on Thursday.

Grayscale’s new co-investment vehicle, GDIO, is looking for opportunities in the crypto-economy market cycles. – Day-to-day operations will be managed by Foundry Digital

The world’s largest digital currency asset manager, Grayscale Investments announced Thursday the launch of a new co-investment opportunity, a financial vehicle that aims to capitalize on the market cycles of the crypto-economy. The new co-investment product is the first of its kind for Grayscale and the bitcoin mining and staking infrastructure company. Foundry Digital will manage the company’s day-to-day operations.

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The four stages of the mining cycle, according to the Grayscale Digital Infrastructure Opportunities (GDIO) fact sheet.

Over the past 12 months, Foundry has been the largest bitcoin mining pool in terms of total hashrate. The company’s mining pool has captured 19.38% of the overall hashrate this year, or discovered about 10,375 of the 53,532 BTC blocks found over the past 12 months. The bear market has been troublesome for miners this year, and Grayscale believes that the crypto-currency winter may offer unique investment opportunities.

Grayscale’s investment thesis is as follows:

With the dramatic drop in the price of bitcoin, leveraged miners have come under significant pressure on their operating margins. In the coming months, we expect some miners to be forced to liquidate their mining equipment. We believe that GDIO will have the opportunity to purchase mining equipment at unfavorable levels and mine bitcoin profitably in the future.

For example, crypto miner Cleanspark explained last summer that the downturn in the crypto economy has produced “unprecedented opportunities.“At the end of June, a report noted that $4 billion in bitcoin mining loans were in distress. Also, in September, Jihan Wu’s Bitdeer launched a $250 million fund to help struggling miners. Grayscale CEO Michael Sonnenshein says his company has an advantage over others that allows Grayscale to find opportunities in the crypto-currency winter cycle.

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Grayscale’s unique position at the center of the crypto ecosystem allows us to create offerings that allow investors to put their capital to work across different market cycles“, Michael Sonnenshein noted in the announcement. “Our team has long been committed to lowering the barrier to investing in the crypto ecosystem – from direct exposure to digital assets, to diversified thematic products, and now to infrastructure through GDIO.

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