Crypto miner maker Coinmine on Thursday announced that it raised $2.5 million in a seed funding round.
Led by the investment company M13 Ventures, many venture capitals and acclaimed investors, including Gumi Crypto, Republic Labs, Canaan Labs, and Shervin Pishevar participated in the funding round.
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Crypto mining device for hobbyists
Coinmine offers an all-purpose crypto mining device called Coinmine One. The $800 machine is user-friendly and can be operated simply by using mobile applications. And just like a modern piece of tech, the device receives over-the-air (OTA) updates to extend support for cryptocurrencies and adding more features.
Launched last year, Coinmine only supported mining for Ethereum, Ethereum Classic, Monero, and Zcash. Earlier this year, the company pushed updates to add mining capabilities for Bitcoin and Grin. It also reduced the energy consumption of the machine by 30 percent.
Despite generating revenue from selling the devices, the company is also charging a commission of five percent on the coins mined using its devices.
The fresh financing came at a period when the company reported 50 percent growth month over month since April, Coindesk detailed. In addition, around ten percent of the company’s customers became recurring buyers. It also recorded good customer feedback as less than four percent of the sold mining devices were returned.
With the funds, the company is aiming to expand its engineering division and is planning to offer its users option to mine more digital currencies.
Last November, the company raised $2 million from investors like Anthony Pompliano, Balaji Srinivasan, and Coinbase Ventures.
The miner making company is also expanding its reach into the industry and partnered with Compound Finance, Cred, and Blockfi in June to allow users to earn returns on mined digital currencies.
Despite the increasing demand, Coinone’s primary market still lies among the crypto hobbyists. Meanwhile, Bitmain, the leading crypto miner manufacturer, endured a loss of $310 million in the first quarter of this year. The company, however, is expected to register profits with its new line of 7 nanometer ASICs.