CoinSeed buys $5 mln worth of Bitcoin mining hardware

CoinSeed, a Bitcoin-focused investment fund, has acquired about $5 million worth of Bitcoin mining hardware. CoinSeed raised more than $7.5 million from undisclosed private investors. The firm is targeting Bitcoin mining hardware to secure a long-term position in commercial Bitcoin mining, and plans to raise an additional $15 million of venture funding, for a total of $22.5 million in 2014.

Press Release

CoinSeed, a Bitcoin focused investment fund led by Harvard Business School graduate, Merlin Kauffman, has purchased what is believed to be the largest private single sale of specialized Bitcoin mining hardware in existence. In total $5 million worth of BitFury’s 55nm ASIC based Bitcoin mining hardware was acquired as the first building block to create one of the largest commercial Bitcoin mining infrastructures.

After raising over $7.5 million from undisclosed private investors in less than one month, CoinSeed is now aggressively investing in Bitcoin mining hardware to secure a long-term position as a leader in commercial Bitcoin mining in the midst of the rise in popularity of the alternative digital currency. According to Merlin Kauffman, “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. 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.”

CoinSeed plans to raise an additional $15 million of venture capital throughout the following 8 months, and aims to bring total funding to $22.5 million in 2014.

As part of infrastructure development efforts, CoinSeed has hired Zach Dailey, founder of LabRatMining, to lead their technical deployment.

According to David Carlson, President of MegaBigPower, the US distributor for BitFury mining hardware, “CoinSeed and Merlin Kauffman have purchased the largest single-order quantity of Bitcoin mining hardware to date.” Carlson adds that, “We have entered into an agreement with CoinSeed to provide a stable supply of hardware to support their infrastructure requirements for the long-term.”

CoinSeed is currently the largest Bitcoin mining investment fund in the world, and is actively pursuing additional cryptocurrency service related investment opportunities.