CoinSeed pours $5 million into Bitcoin hardware

Investment fund CoinSeed, which concentrates on Bitcoin ventures, raised $7.5 million in a month for projects in the cryptocurrency’s space. The fund, based in Las Vegas, hopes to gain $15 million more over 8 months. CoinSeed most recently spent $5 million on mining hardware to develop its commercial Bitcoin mining infrastructure. As of this morning, the Bitcoin industry’s market cap stood at $11.3 billion.

Bitcoin mining has shifted rapidly over the last year from the domain of hobbyists with everyday home PCs to an undertaking that requires significant investment in customized equipment. Today, news emerged that Las Vegas-based bitcoin investment fund CoinSeed made a $5 million investment in BitFury 55 nanometre bitcoin hardware, which are capable of operating at a staggering 1522 GH/s. The deal sets the stage for CoinSeed to be one of the largest mining operations in the US. Many of the world’s dominant mining operations are based in places like Iceland and Eastern Europewhere energy prices and real estate prices offer potential cost savings help offset the high cost and narrow margins of solving bitcoin’s cryptologic puzzles. Other groups operate as distributed networks, banding together the hardware resources of numerous small, independent miners.