Investors responded enthusiastically to Coinmine’s call for funding, splashing the crypto mining equipment maker with a seed funding of $2.5 Million. The startup reportedly witnessed a steady 50% month over month growth starting April. According to a representative of the company, Coinmine would be liquid already except the management decided to reinvest its earnings back into the business.
M13 Ventures led a host of other investors including Gumi Crypto, Shervin Pishevar, and Republic Labs among several others in raising the seed capital. It is safe to argue that Coinmine’s impressive performance appealed to the investors. According to an insider, about 10% of its customers are repeat customers and less than 4% of the company’s devices reported having been returned.
Funds for Expansion
The representative revealed that the company plans to spend the capital on hiring more engineers that will help develop new enhanced features for the company’s signature equipment, a hobbyist-level miner. According to the company’s Chief Executive Officer “[T]his latest round of financing will help us accelerate our mission of getting more people to experience how easy it is to earn Bitcoin and other cryptocurrencies.”
The team of engineers is expected to add more features to the mining tool and equip it with the capacity to mine other energy-efficient cryptos like Monero, Grin, Ethereum, and Zcash. The machine is expected to be compatible with Android mobile applications as well as those of iOS. Additionally, it will update “over-the-air automatically like a Tesla.”
Low Energy Consumption
For the longest time now, environmentalists and lobby groups have raised concerns about crypto mining energy consumption. Coinmine’s improved machine takes into consideration these concerns as it is designed to cut down energy consumption by 30%.
Coinmine has put in place several growth-focused strategic plans that will see the company expand its market share significantly in the long run. As part of the strategic plan, the company recently partnered with Cred, Blockfi, and Compound Finance in a deal that will see its users earn a return for the cryptos they mine.