The company is consumerizing bitcoin mining by connecting supply and demand through its modern marketplace which has transparency and customer-centricity at its core
NEW YORK, NY / ACCESSWIRE / March 5, 2021 / Compass Mining, the first two-sided bitcoin hosting marketplace, announced it has secured $1.7 million in Seed funding. The round was led by Galaxy Digital, with participation from Coinshares, Coinfund, CoinGecko, Kinetic, Rarestone Capital, CMT Digital, Meltem Demirors, and Zac Prince from Blockfi. The company is committed to democratizing Bitcoin's hashrate and securing the network by enabling everyone to mine Bitcoin profitably.
"In an industry where success is determined by the careful balance of cost, performance, and efficiency, a transparent, customer-centric marketplace provides an ideal solution to connect supply with demand. We are thrilled to see Compass focus on this market and service miners of all sizes." said Amanda Fabiano, head of mining at Galaxy Digital.
Bitcoin mining has fast cemented its position as a lucrative industry, with the global mining industry generating $1 billion in revenue in January 2021. Today, hosting facilities struggle to attract and retain customers. Retail miners struggle to procure machines and identify trustworthy hosting partners. By providing a two-sided marketplace that offers access to machines and aggregates retail demand to provide economies of scale, Compass solves a pain point for both sides of a hosted mining transaction, while providing trust and transparency to market participants and gathering valuable data to dispel popular misconceptions around bitcoin mining.
"Bitcoin is the most important technology to emerge since the internet. It's a medium of exchange, a store of value, and a layer upon which untold future innovation can occur", said Whit Gibbs, Compass Cofounder and CEO. "Without mining, there is no Bitcoin. We launched Compass to ensure that everyone has the access and ability to grow their exposure to this very lucrative industry by owning part of the critical infrastructure supporting the entire blockchain."
The supply side of the market consists of bitcoin mining hosting facilities looking to fill excess capacity, and new and second-hand mining hardware distributors looking to directly access a larger audience. On the demand side are institutional and retail customers searching for trusted parties through which they can acquire bitcoin mining machines and verified facilities where they can access favorable power rates. Compass acts as a technology platform between the supply-side and demand, intermediating transactions between parties and providing hands-on guidance for those new to the industry.
In its first 60 days of operations, Compass has sold $11.4m in mining machines and placed 3.7 Megawatts of customer capacity with hosts. Whit Gibbs, Founder and CEO of Compass Mining, has nearly two decades of leadership and project management experience, working with Hilton Hotels, Aliant Payments, and PuppySpot.com. He started HASHR8 Podcast in 2018, out of a desire to learn more about mining. He has since grown it into the #1 bitcoin mining podcast in the world and leveraged it to establish Compass as one of cryptocurrency's most recognizable mining brands.
Meltem Demirors at CoinShares added "The development of the bitcoin mining ecosystem will mirror the development of the early internet. As the bitcoin industry becomes horizontally integrated along the bitcoin value chain, firms will operate their own mining operations to ensure they have access to the bitcoin network. This is also how the internet peering market and subsequent data center market evolved-firms needed help from experts in building and managing an infrastructure footprint with reliable vendors and third parties. Securing bitcoin compute and connectivity will become a key priority for exchanges, wallets, asset managers and holders of bitcoin."
The new capital will be used to aggressively scale Compass's team and tech to meet market demands while redefining the industry standard for customer service and support.
About Compass Mining
Compass is a bitcoin-first company on a mission to strengthen Bitcoin's network by democratizing hashrate. Compass Mining's marketplace provides easy access for institutions and retail to procure and deploy their own mining operations. Compass also produces an industry-leading podcast and research to educate new and existing bitcoin miners. Bitcoin mining is a notoriously opaque industry, but Compass is there to guide everyone's path to successfully mining bitcoin. Thanks to Compass, it has never been easier to mine bitcoin.
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SOURCE: Compass Mining