Frank Timiș, a billionaire who reportedly has ties with the Rothschild Bank is one of those who invested in Argo Blockchain, a cryptocurrency mining firm. It also signals the first step of institutional investors into the crypto space which could finally bring about the bear market’s end, reports a media outlet on April 22.
Frank Timiș Invested in Argo Blockchain
Per the report, Frank Timiș, a 56-year-old Romanian-Australian businessman who is linked to the Rothschild Bank invested in Argo Blockchain. The latter is reportedly the first cryptocurrency exchange to be listed on the London Stock-Exchange. It was able to raise £25 million in an IPO, which is based on a valuation of £47 million.
Timiș, on the other hand, has a 14 percent share in the London-based Bitcoin mining firm. The news was revealed by Argo blockchain after two top executives at the firm were ousted. Prior to the billionaire’s investment, the company had publicized an overhaul in its business plan earlier this year. The cryptocurrency winter had contributed much in making its previous flow model unprofitable.
Argo Blockchain Had Focused on a Subscription-Based Mining Model
The company had also been focused on a subscription-based mining model where investors were allowed to rent the hash power of other miners. Nonetheless, it has moved to purchasing its crypto mining equipment. Steps of this nature is believed to be the starting point for the venture of institutional investors in the market.
Frank Timiș, for instance, is deeply rooted in the oil and gold industries. His economic interest in the latter has reportedly, given the London oil tycoon close ties with the Rothschild Bank. Gabriel Resources, Timiș’ gold mining company was able to obtain a $3 million loan from the bank in the 1990s.
Institutional Investors’ Interest in Crypto Could Impact its Price
Generally, cryptocurrency analysts believe that the interest of institutional investors in the market would greatly impact on the price of these virtual assets. There will be more money in the market and a close repeat of 2017’s bull market if not the same. Others like Dan Morehead of Pantera Capital has pointed out that the prices of these assets themselves need to improve before the attention of institutions can be gained.
Companies on their own are trying to set up a platform that enables institutions to securely trade and store cryptocurrencies. Some instances of these are fidelity investment who in March had revealed that the testing of its crypto custody platform is in its final testing phase. Rakuten, a Japanese conglomerate that is usually likened to Amazon recently announced the opening of registration for its yet to be launched cryptocurrency wallet service.