Foundry Company Intelligence

2021 was a key year for the decentralization of Bitcoin mining and the growth of the North American mining power. China’s mining crackdown last May provided a break for the Chinese dominance in the mining industry, leaving room for other global players to grow their market share. At the center of this aggressive growth was Foundry, a U.S.-based company with a mission of empowering a decentralized infrastructure for a digital world. Foundry provides various institutional-grade services within the digital asset mining and staking industry. As a subsidiary of the Digital Currency Group, Foundry seeks to leverage the DCG network to partner with other portfolio companies and enhance its service offerings. One of the most active investors in the blockchain space, DCG currently invests in over 160 companies, including companies such as Grayscale and Genesis. Foundry’s initial launch included three main services: (1) equipment financing, (2) mining advisory services and (3) Foundry Labs. Aligned with Foundry’s mission, these services were to provide capital and institutional support for the growing mining industry. In 2021, Foundry continued to release new services, expanding its scope in the cryptocurrency mining industry. Foundry’s Proof of Work services currently include Foundry USA Pool, Miner Treasury Management (Genesis access for pool users), Equipment Financing, Mining Advisory Services and FoundryX. Foundry’s Proof of Stake services include Staking as a Service and Foundry Labs. Foundry has deployed close to $500 million into the North American mining space through self proprietary mining and its equipment financing business.

Foundry provides mining equipment financing to facilities in North America and aims to expand its services globally. With Foundry’s equipment financing, miners are able to use their machines as loan collateral to obtain additional capital to improve their business operations. This loan has a single customer minimum of $1 million and a maximum based on the customer’s credit. The loan term can be 12 or 18-month, with a variable interest rate on the equipment financing, plus a risk premium per machine depending on the customer’s credit. The LTV of this loan can range from 50 - 80%, meaning miners can get a loan to cover 50 - 80% of the equipment purchase cost, excluding tariffs and shipping fees. Foundry also noted that it leverages its relationship with leading manufacturers in the space to help the miners vet and procure the right equipment. With expertise built through self-mining, Foundry can also tailor every deal to the specific needs of each client. Foundry’s clients include Core Scientific, Compute North, Bitfarms, Hut 8, and Hive.