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BitFury $80M Funding Round Attracts Galaxy Digital’s Novogratz

Wilma Woo | Nov 07, 2018 | 03:00

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Bitcoin mining infrastructure company BitFury Group has closed a private funding round worth $80 million from both global and cryptocurrency-focused investors.

Cash To Fund ‘Hardware And Software’ Objectives

In a press release November 6, BitFury, which is also rumored to be planning an IPO, revealed Mike Novogratz’s Galaxy Digital to be among the participants in the round, which was led by European venture capital firm Korelya Capital.

“This private placement will take our corporate governance to the next level, broaden our financial strategic options, and ideally position us for our next phase of growth as the market matures,” executive vice president George Kikvadze commented on the plans for the fresh funding.

The cash injection appears destined to be spread across BitFury’s empire, the head of the company’s Russian arm confirming it would seek expansion into next year. 

Dmitry Ufaev added:

It is a great day for Bitfury and for the future of blockchain and bitcoin technology […] This private placement will help us pursue many new objectives in Russia and Europe in 2019 in both hardware and software.

IPO Preparations?

BitFury is yet to confirm its plans to conduct a public flotation, placing it in a similar position to industry stalwart Bitmain, already the source of IPO rumors for several months.

If BitFury’s rumored plans go ahead, it will seek a valuation of up to $5 billion, Bloomberg reports.

Novogratz meanwhile, continuing to pledge his trust in a resurgence of Bitcoin prices during the first half of next year, is conspicuous in his input.

“We are excited to partner with Bitfury,” he commented, adding that the company’s various attributes were “essential to advancing the underlying bitcoin ecosystem.”

According to the Galaxy Digital CEO, institutional investors experiencing ‘FOMO’ (‘fear of missing out’) will push Bitcoin prices to new highs next year, with a return to $10,000 coming as soon as Q1.

What do you think about BitFury’s funding? Let us know in the comments below!

Images courtesy of Bitcoinist archives, Shutterstock.