Crypto Miner Company CoinMine Scores $2.5 Million in Seed Round
The round was led by M13 Ventures, Republic Labs, Gumi Crypto and an early Uber investor Shervin Pishevar.
Coinmine, the producers of crypto mining hardware and software, announced a $2.5 million seed round of financing.
Led by Los Angeles-based M13 Ventures, Republic Labs, Gumi Crypto and early Uber investor Shervin Pishevar contributed funding, according to a statement made August 15.
According to a company representative, the financing comes amid a period of 50 percent growth month over month since April. Additionally, according to internal metrics, nearly 10 percent of customers become repeat purchasers, and fewer than 4 percent of Coinmine One mining devices are returned.
“We could be cash positive if we wanted to,” the representative said. Instead, the company looks to reinvest its earnings and employ the seed financing to build out its business.
The company plans to hire engineers with the capital. This team will build new features and expand the option to mine more cryptocurrencies for the hobbyist-level miner.
“[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,” said CEO Farbood Nivi. Indeed, Nivi said the product is built to be an entryway to crypto.
The machine is operable from Android and iOS mobile apps and updates over-the-air automatically, “like a Tesla.”
The company also reports the machine’s energy consumption dropped 30 percent. In addition to bitcoin, the machine also mines energy efficient coins like monero, zcash, grin and ethereum.
In June, the company announced a partnership with Compound Finance, Cred, and Blockfi allow users to earn a return on their mined crypto.
For their part, Latif Peracha of M13 Ventures said:
Coinmine One photo courtesy of Coinmine
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.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.