German private equity fund bets on bitcoin mining in cryptocurrency slump

While thousands of miners in China, hurt by the recent slump in bitcoin, have called it a day, German private equity firm Xolaris is preparing to launch a US$50 million bitcoin farming fund targeting Asian investors.

The Munich-based private equity manager’s entry into the Asian market, including a new office set up in Hong Kong in July, comes at a time when cryptocurrencies have lost as much as US$700 billion in market capitalisation this month.

Stefan Klaile, managing partner of Xolaris Group, said subscription for the Asian fund would start in December after the launch of its European mother fund this week.

The European fund aims to raise €30 billion to €50 billion, with a targeted annual return of 21 per cent. The proceeds will be used to fund the expansion of an existing bitcoin mining farm housed in a data centre in Sweden.

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