Trust Fund for Next-Gen Family Offices

• why to chose a bitcoin mining fund as a trust fund for Next-gen

• bitcoin mining reality check, from it consumes lots of energy, it’s not profitable, to can be diversified moving to AI/HPC data center…

• the reality check of what makes bitcoin mining profitable

Bitcoin Mining Funds: A Bet on the Future of Digital Trust

Bitcoin mining funds aren’t just another crypto investment—they’re a stake in a future where digital assets serve as reliable infrastructure, not just speculative bets.

Younger generations—Gen Z and early Millennials—have grown up watching financial institutions falter and governments struggle. To them, Bitcoin’s proof-of-work isn’t just a piece of technology; it’s a foundation of trust, immune to human interference.

Mining funds provide a way to tap into this system without the need to run mining rigs. They offer steady returns linked to a network that has proven itself resilient, along with a hedge against the slow decline of fiat currency.

This isn’t about chasing crypto hype. It’s about investing in something that has survived its skeptics—quiet resilience over loud promises—while aligning with the shift toward sustainable energy.

Why a Bitcoin mining fund could be the ultimate trust fund for next-gen family offices?

A Bitcoin mining fund can tackle the Bitcoin custody problem and streamline family office inheritance in a clever, integrated way by shifting the focus from holding coins to generating them—and managing that process as a trust-like structure.

• Built-in Resilience, Inflation Hedge, Passive Income, Energy Innovation Edge, Decentralized Control

Bitcoin mining fund vs bitcoin mining company

Investing in a Bitcoin mining fund versus a Bitcoin mining company offers distinct advantages, depending on your goals, risk tolerance, and level of involvement.

• Diversification A Bitcoin mining fund typically pools capital from multiple investors to invest across various mining operations, equipment, or even geographies. This spreads the risk compared to investing in a single Bitcoin mining company, which might be vulnerable to operational hiccups, management decisions, or localized issues like power costs or regulatory changes.

• Professional Management Funds are often managed by experts who understand the complexities of Bitcoin mining—such as hardware optimization, energy sourcing, and market trends. This reduces the burden on you to stay informed about technical details or industry shifts, unlike investing in a specific company where you’d need to evaluate its leadership and strategy yourself

• Lower Entry Barrier Investing in a fund can require less capital upfront than taking a significant stake in a mining company, which might involve buying shares at a premium, or committing to large-scale investments. Funds often allow smaller investors to participate in the mining ecosystem with more accessible minimums

• Liquidity Potential Depending on the fund’s structure (e.g., if it’s traded or offers redemption options), you might have more flexibility to exit your investment compared to owning shares in a mining company, especially if it’s privately held. Publicly traded mining companies can offer liquidity too, but their stock prices can be more volatile and tied to company-specific risks

• Exposure Without Operational Hassle A fund gives you indirect exposure to Bitcoin mining profits (and potentially Bitcoin itself) without the need to manage hardware, negotiate energy contracts, or deal with the logistics of running a mining operation. Investing in a company ties your returns more directly to its operational success, which can be hit-or-miss

• Mitigated Volatility While both options are tied to Bitcoin’s price, a fund might balance its portfolio with strategies like hedging or holding Bitcoin alongside mining revenue, potentially smoothing out some of the wild swings. A single mining company’s profitability, on the other hand, often hinges heavily on Bitcoin’s spot price, mining difficulty, and its own cost efficiency

• In short, a Bitcoin mining fund offers a broader, managed, and potentially less volatile way to tap into the mining space, while investing in a mining company is a more concentrated bet on that entity’s performance. Your choice depends on whether you prefer a hands-off, diversified approach or a deeper stake in a specific operation with higher risk and reward potential

Bitcoin mining consume lots of Energy

In today's world, discerning truth from falsehood often demands either extensive research, or a deliberate choice to trust certain sources/people based on your own judgment. Both approaches are far less perilous than passively succumbing to the current madness of modern life.

From Newsweek Published Dec 11, 2017 at 10:07 AM EST and Updated Mar 06, 2018 at 11:13 AM EST

March 2025: we are sure bitcoin mining didn’t consumed all the World’s energy! 🤡 

The piece above dismantles, step by step, every charge Greenpeace has lobbed at Bitcoin mining. By now, a heap of research and peer-reviewed studies have already done the same, tearing down those accusations with hard evidence. You can find a collections of articles also here

Is it still worth spending time doing that?

Meanwhile, bitcoin mining has acquired a fearless competitor in high intense computational power. AI data centers are consuming vast amounts of energy, surpassing the levels used by bitcoin mining. Given the growing energy shortage, why have the criticisms about energy consumption that were once directed at bitcoin mining seemingly disappeared?

It’s no secret that AI has skyrocketing demand and the highest energy consumption yet—openly acknowledged by none other than Jensen Huang, NVIDIA’s CEO, one of the most prominent and respected figures in today’s global tech landscape.

Given this context, does it still make sense provide explanation about how bitcoin mining, flexible load data centers, function and their critical role in supporting sustainable energy grids? Justifying bitcoin mining role, particularly, with intermittent flow of renewable power that demands virtual batteries to capture surplus energy that would otherwise be lost? It’s pretty straightforward—almost a no-brainer—that the only real path forward is hunting down cheap energy and making it work. Bitcoin mining drives renewable energy development that otherwise would be wasted, acting as virtual battery and buyer of first and last resort.

Or does it just boil down to the usual adoption curve of any new technology, where some grasp it faster than others and doesn’t make sense anymore to fight with who will just take more time to digest this reality?

Bitcoin mining is not profitable

There’s a lot of buzz around the profitability of Bitcoin mining, and while various metrics are worth understanding, there are some foundational elements that truly shape the mindset and knowledge needed. To understand bitcoin mining you should already understand:

• how data centers function, the Proof of Work (PoW) algorithm, and a deep-seated belief in Bitcoin itself

Also certain convictions are a requisite before jumping into bitcoin mining:

• Bitcoin volatility is a feature not a bug.

• Bitcoin’s exceptional liquidity sets it apart, and it’s a long-term play—a minimum of four to five years.

• The price isn’t just a standalone factor; it’s part of a bigger picture

• The value of bitcoin will appreciate over time

March 2014, bitcoin was $457.00, it was down 16.9% for the month. The singer Lily Allen refuse to get paid in bitcoin, now worth 9 billions.

This price appreciation conviction will make you understand why it is worth to mine also unprofitably, or break even (for as long as your resources allows you to do so, or as long as how many bitcoin you want to mine), in order to mine newly minted bitcoin. Also, you have to believe that virgin bitcoin have a value way higher than spot price. Sometimes up to 50% premium. With a fluorescent market waiting for them: Banks!

Bitcoin and bitcoin mining liquidity can be understood by who see the vision and the future. In perspective, for the cost of a house, or a big investment ticket, bitcoin mining is more liquid than bitcoin retail. Depending by the geographies, it might be easier buy a Ferrari than milk, or bread, with a bitcoin, for now. Although thinks are changing exactly in the second everybody stop talking about it, which is the point of all deal: using a payment rail that nobody cares about the name, because it just works. Also, the scarcity of the coin will make them available only from the holders, and highly desirable by institutions. Price will skyrocket.

Without going into the intricacy of the various metrics, although extremely important, the main internal parameters that are at the base of any mining business evaluation are:

Electricity costs, hardware procurement, operational efficiency, strategic business model with a sophisticated risk management that can handle the largest number of external variables, it is a requirement.

Bitcoin Mining is consolidating as industrial activity. Public bitcoin mining companies are the ones can negotiate the best conditions due to capital availability as public companies, and economy of scale. The ones not yet public, are chasing the growth to get bigger and bigger, due to the reason just mentioned. Others, very few, are focused on growing alternative, uncorrelated revenue streams to get a steady cashflow from. The latter are the unicorn of the mining industry.

Electricity cost. While electricity costs account for 80% of expenses and are the primary factor in bitcoin mining, they alone do not ensure success. Like any business, profitability requires more than just connecting costly machines in a farm or data center. That said, securing long-term, fixed electricity rates is essential for bitcoin mining, especially given the recent subsidy reduction (bitcoin reward) to 3.25 and the next in 2028.

Procurement is critical in any business, and in bitcoin mining, this means securing hardware—the raw material—at the best possible terms. The majority of mining business bankruptcy is due to debt. Being able to pay pack is not only a matter of procurement, though. Currently, the hardware supply is dominated by China. While other suppliers exist, they remain insignificant for now, though this could shift in the future.

Efficiency: although efficiency sounds like an extraordinary effort in the bitcoin mining world, it is the norm for t1 to t4 data centers. Why is that? Fundamentally because mining started without SLA (service level agreements) a contract where the data center operator is committed to provide a certain level of performance and services to their clients. Now, I would not be surprised that there are still miners that don’t even know what SLA is, but, it is also true that by design they provide a different service to different customers (mainly themselves). Bitcoin mining data centers are categorized as t0 data centers, for their flexible load that can switch off/on the machines whenever they want. Although 99.99% uptime it is not a requirement, longer the machines are off line, the longer are unprofitable. A Lower uptime it is acceptable, but must cover at least monthly operations costs. Bitcoin mining clients do not need bitcoin computational power, like for traditional, and AI data centers, but the by product of it, which is bitcoin.

Running a bitcoin mining data center vs AI/HPC data center

No one say that, but paradoxically it is easier to run successfully a bitcoin mining business than an AI/HPC data center.

That said, pivoting Bitcoin mining into an AI data center could make sense as a diversification play, but only if:

• a miner can rent their infrastructure to a AI data center, which implies ownership of the data center in the first place, to get passive income

• a team with the proper expertise that can handle a different type of business. Usually who runs a bitcoin mining farm doesn’t know how to run a traditional data center and neither AI/HPC data centers that are way more complex

AI data centers brought a little bit more stability and more demand (for sure, but yet to be proven) in a market that is newer, with early stage technology, a fierce competition, and one company monopoly: NVIDIA.

AI data centers start being suffocated by debt without clear, or for sure not proven, business model and go to market strategy. Enterprise potential customers are still in the fog where, how, and what, exactly they should they buy. Vendors positioning dynamics completely changed. It is a new world for every stakeholder in the AI/HPC business.

Markets flush with capital often attract a wave of unchecked greed, much of it fueled by hype rather than substance—or guided by seasoned players who can steer that money into the industry with the wisdom of experience.

Conditions for running a successful mining business

Businesses need to demonstrate sustained traction and long-term growth to thrive. Bitcoin mining originally stood out as a self-sustaining model—miners produced Bitcoin and held it, creating value from within. However, over time, mining evolved into a commodity business, where long-term survival depends on maintaining low and stable electricity costs to preserve margins over the years.

But is that enough? No. To build resilience, mining companies must diversify their revenue streams, ideally incorporating uncorrelated sources of income, to get steady cash flow. Relying solely on mining, exposes them to volatile external conditions, compounded by internal business fluctuations. A sustainable operation requires strategic adaptability—ensuring stability even as market dynamics shift.

Going public offers companies both advantages and drawbacks. A primary motivation is to raise capital for significant growth. A company that has successfully generated capital by selling its products within its business model for several years demonstrates to the market that its approach is effective and that it has the capability to execute successfully.

To discover how a bitcoin mining fund works and to get the tear sheet feel free to send an email to [email protected] or feel free to schedule a call

READ

• List of free resources about bitcoin mining: Learn about bitcoin mining industry and investing: masterclass | by Laura Spinaci | Medium

• Get the fund One pager of the bitcoin mining businesses unicorns

• Bitcoin mining economics cheat sheet

• Bitcoin’s Energy Usage Isn’t a Problem. Here’s Why | by Lyn Alden

• Cryptocurrency mining as a novel virtual energy storage system in islanded and grid-connected microgrids

• Rebuttal of GreenpeaceUSA Report on Bitcoin – Batcoinz