Foundry Digital, which is a mining subsidiary of Digital Currency Group (DCG), has launched a dedicated marketplace just to sell Bitcoin mining machines.
On this platform, The FoundryX platform will allow users to buy as well as sell bitcoin mining machines. Fou dry stated that it has built connections with approx. 200 buyers and sellers. These may include public mining companies, family offices, and energy companies.
Jeff Burkey told The Block that the proper launch of FoundryX comes after the firm operated the service behind the scenes over the past year, Foundry’s VP of business development.
Sales for the firm have shown excellent performance having sales of over $125 million this year from this business. The company has been serving customers in the U.S., Canada, and Norway, said Burkey.
The company would be selling both new and second-hand bitcoin mining machines, said Burkey. The platform will cater to mid-and-large-sized miners, not small-sized miners mining from their homes.
According to the FoundryX website, the minimum order size for mining machines is 50 units.
The company said it currently has over 40,000 units of the latest bitcoin mining machines from Bitmain and MicroBT available for delivery from next year.
Why would miners buy Bitcoin machines from Foundry instead of manufacturers directly?
Manufacturers have higher minimum order quantities, generally above 100 units. They also require large deposits six months or more along with delivery. Foundry, on the other hand, can fulfill smaller orders and has flexible payment options, Burkey said.
“Our goal for 2022 is to be the market leader in the $2.5 billion [crypto mining hardware] market,” he added
The demand for FoundryX’s services will boost as Chinese miners are looking to set up operations around the globe. According to Burkey, new players are entering the market, including energy companies and family offices.
Foundry was launched in 2019. It opened its bitcoin mining pool to the public last year and has quickly grown to become the second-largest mining pool in the world, behind only AntPool. It represents nearly 15% of Bitcoin’s network hash rate or computing power, according to tracker btc.com.
Last month, Foundry also launched crypto staking business aimed at institutions such as exchanges, wallets, custodians, hedge funds, banks, and venture capital firms.
Foundry’s marketplace follows the company launching a range of services for 20 crypto staking networks.
Announcements by the company about Bitcoin mining
“Foundry solves these problems by providing buyers and sellers with a trusted and reliable U.S.-based secondary market for mining machines,” the company’s announcement explains.
Jeff Burkey, VP of Foundry’s business development department said during an announcement, “With the industry’s leading clients and partners, from machine manufacturers to mining companies, we have the market knowledge and data to match the right buyers and sellers, at the right price.”
The company has also joined hands with a slew of bitcoin mining operations this year. This includes firms like Greenidge Generation Holdings, Bitfams, Hut8, Cleanspark, Core Scientific, Compute North, Bit Digital, Bitdeer, and Hive.