US Bitcoin investment fund CoinSeed invests $5M in BitFury mining hardware

By VCPOST Staff Reporter

Jan 23, 2014 11:16 PM EST

CoinSeed has acquired what is believed to be the largest single-order purchase of Bitcoin mining hardware. The Bitcoin-focused investment fund bought BitFury's 55nm ASIC based bitcoin mining hardware for $5 million to build one of the world's biggest commercial Bitcoin mining facilities, according to Business Wire.

The investment fund has just raised more than $7.5 million in private funding less than a month ago. Now, the company is aggressively pursuing an investment in Bitcoin mining hardware to position itself at the top of the commercial Bitcoin mining industry. The strategic purchase comes amid the rising popularity of the alternative digital currency, the report explained.

The Merlin Kauffman-led fund plans to raise a further $15 million in venture capital in the next 8 months. CoinSeed is targeting a total raised capital of $22.5 million this year, the report detailed.

As part of its efforts in infrastructure development, CoinSeed has sought the services of Zach Daily to head the firm's technical deployment. Dailey is the founder of LabRatMining, the report added.

CoinSeed is presently recognized as the world's biggest Bitcoin mining investment fund. The company is now eyeing more investment opportunities related to the cryptocurrency service, Business Wire reported.

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