Opinion | Cloud Mining: An Alternative Investment Vehicle for Bitcoin Exposure

As
institutional interest in crypto grows, most investors are entering the digital
asset space through OTC trading or investing in digital asset index funds.
However, many institutional investors are seeking new ways of exposure to this
nascent asset class that secure predictable returns without the extra steps and
volatility that traditional digital assets investments involve. For these
investors, cloud mining products have been touted as a viable alternative.

Between
the explosion of computing capabilities, daunting complications of mining site
management and increasingly complex technology required to mine bitcoin at a
profitable hash rate, institutional investors are hesitant to undertake mining
on their own. These institutions have turned to cloud mining products as a way
to gain mining exposure without fronting necessary overhead costs and physical
operations, such as storage and electricity bills. While the cloud mining
industry’s reputation has been knocked in the past…