DigitalBTC and Cryptsy are building a new platform called digitalX Mintsy that will offer both tradable mining contracts and mining infrastructure, enabling users to mine with their own equipment as well as the hashing power they purchase.
As part of the deal, Cryptsy will invest $250,000 in the Australia-based bitcoin mining services provider. The project will open for registration tomorrow.
will offer mining products and services on a range of digital currency hashing algorithms, including SHA-256 and crypt. Further, it will release its first products during the fourth quarter of this year.
Cryptsy CEO Paul Vernon told CoinDesk that the goal of the new platform is to offer the trading community a broad range of investment services. At the same time, Mintsy is aimed to provide more affordable access to hashing power, factoring the cost of electricity and labor expenses into the listing price.
Like other applications of this approach to selling mining contracts, Mintsy will make available 1 petahash worth of so-called 'hashfracs', each of which represent 100TH/s. There will also be 'litefracs' and 'xfracs' available, representing litecoin and an as-yet-undecided algorithm, respectively.
Mintsy will also feature mining pools for both bitcoin and a number of other altcoins, including a multi-pool function. This, Vernon explained, was to provide the site’s users with a wider array of mining resources and allow people to mine with their own equipment as well.
Vernon told CoinDesk that the goal is to align the coin offerings on the exchange and mining platforms, saying:
There will also be a degree of interconnectivity between Mintsy and Cryptsy. Similar to the relationship between CEX.io and GHash, users will be able to transfer balances between the two platforms.
Commodification of hash power continues
An increasing number of companies in the exchange and mining industries are offering tradable contracts as the model has emerged as an alternative to traditional cloud mining agreements.
Despite the rising popularity of commodified hashing power, there are still major players in the space that offer more traditional mining contracts.
recently launched a cloud hashing initiative at its Norway-based data center. At the time, the company asserted that hosted solutions are becoming a more attractive option for miners, a sentiment that has been increasingly echoed by businesses that offer both tradable and traditional mining contracts.
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.