BitRiver, a key player in the Russian cryptocurrency mining market, aims to raise up to $35 million by selling tokens that entitles holders to space in its data centers.
The company, which operates several mining farms in Siberia for 150 megawatts in total, would use the proceeds from the sale to open more such facilities. The token runs on the Ethereum blockchain, the main launchpad for fundraising tokens since the heady days of the 2017 initial coin offering (ICO) boom.
While ICOs have largely faded, BitRiver’s token offering, announced Monday, is one of several to hit the market this year tied to the mining sector.
In late March, Blockstream launched a token representing the value of hash power at Blockstream’s mining facility and offered buyers an indirect exposure to bitcoin. Tau Protocol recently launched a token pegged to bitcoin hashrate and backed by Genesis Mining, Binance Pool, Atlas Mining and others.
BitRiver, however, takes a different approach. Instead of indirect exposure to bitcoin, it offers clients a form of tokenized contracts for mining services, with a bonus income in tokens.
“It’s a utility token and it ideally fits our goal: to raise funds from people who will be using our future infrastructure,” BitRiver CEO Igor Runets told CoinDesk.
More farms in Siberia
BitRiver, registered in Gibraltar