$5 million Invested by CoinSeed in Bitcoin Mining
“We are confident with respect to the long-term viability of Bitcoin as a legitimate currency and innovative payment method. CoinSeed’s initial hardware investment will predominantly see a return from the mining venture.”
Kauffman is saying that investing in Bitcoin mining will yield profitable returns for CoinSeed. He views Bitcoin as having staying power in the world of currencies and thinks of it as long-term. In addition, his confidence in Bitcoin can clearly be seen as he is investing $5 million in mining hardware.
The Harvard graduate further says,
“However, our long-term focus is laying the framework to serve merchants as a dedicated transaction clearinghouse, in an effort to provide rapid payment confirmations. We have already begun talks with high volume merchants.”
In less than a month, CoinSeed was able to raise over $7.5 million from private investors. Immediately afterwards, they began investing in mining hardware so that they could maintain a strong position in the Bitcoin mining field. Kauffman also mentions that CoinSeed hopes to increase their funding to $22.5 million in 2014.
“CoinSeed and Merlin Kauffman have purchased the largest single-order quantity of Bitcoin mining hardware to date,”
says David Carlson, the president of the US distributor for Bitfury. In addition, Carlson mentions that he and CoinSeed came to an agreement that the cryptocurrency investment fund will be supplied a steady and stable amount of hardware to support CoinSeed long-term.
This move puts the Bitcoin focused investment fund to the top of the Bitcoin mining ladder. Having a strong processor increases the rate at which one gets bitcoins through mining. Bitfury runs in a rate of 1522 GH/s. This makes it one of the highest performing Bitcoin mining hardware at the moment.
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