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$5.3 Billion Hedge Fund Expands Bitcoin Mining Investment

Core Scientific announced yesterday that the hedge fund and investment manager Horizon Kinetics increased its partnership with the U.S. based blockchain hosting provider. Horizon upgraded its cryptocurrency service, hosted by Core Scientific, to Bitmain Antminer S19 and S19 Pro models. 

Horizon Kinetics has approximately $5.3 billion in assets under management but did not disclose the size of the cryptocurrency miner investment.

Core Scientific stated in their press release that during the last year, Horizon Kinetics had tripled the number of miners it hosts with Core Scientific. 

Core Scientific’s Blockchain Development VP, Taras Kulyk, said in an interview that more financial institutions would move blockchain mining operations to North America from overseas locations. Last February, as reported by Reuters, Barry Silbert, founder of New York-based Grayscale Investments, one of the largest crypto management funds, made a similar observation.

It is unclear if the change is due to cheaper electricity, more efficient operations, or compliance and audit reasons.

Hugh Ross, COO of Horizon Kinetics said: “Having performed due diligence reviews of more than a dozen hosted cryptocurrency mining facilities in the United States and Canada over the last three years, and now having worked with Core Scientific for more than a year, we have seen first-hand the difference working with a professionally managed organization can make in the success of your mining business. The sheer size of their operation coupled with their dedication to the client experience had already put in them in the top tier of U.S. domiciled hosting companies.”

Core Scientific recently purchased 17,000 of the latest generation cryptocurrency miners from Bitmain.  

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