Benzinga - A group of investors is seeking to raise $100 million for a Bitcoin (CRYPTO: BTC)-focused fund, despite the ongoing challenges faced by the cryptocurrency industry.
What Happened: The Bitcoin Opportunity Fund targets high-net-worth investors who wish to diversify into Bitcoin and invest in both public and private Bitcoin-related companies.
The team is led by six investors, including James Lavish and David Foley, and the fund is described as a "distressed investment" opportunity, Bloomberg reported.
According to Lavish, "the scandals that have plagued the digital asset industry have created opportunities for distressed investing."
Specifically, the fund is considering buying up debt belonging to publicly listed Bitcoin miners that have been trading for "pennies on the dollar."
Meanwhile, Foley highlights the opportunities presented by plummeting valuations of private companies.
"Those are interesting opportunities to delve during this distress," he said.
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Cory Klippsten, CEO of automated Bitcoin savings plans provider Swan Bitcoin, believes the current banking crisis highlights the need for Bitcoin.
"Everyone needs some money they own and control," he said.
The Bitcoin Opportunity Fund's partners are putting "a significant portion of their own net worth" into the fund.
The team includes managing partners Lavish and Foley; Larry Lepard, founder of Equity Management Associates; Greg Foss, executive director at Canadian energy firm Validus Power Corp.; and Mark Moss, founder of media company Market Disruptors.
Bitcoin experienced a recent surge, briefly surpassing the $26,000 mark earlier this week, but has since fallen to $24,939 as of Thursday.
It remains down approximately 62% from its all-time high of nearly $70,000 in November 2021.
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