DCG Launches New Cryptocurrency Mining Subsidiary Fortitude Mining

According to Cointelegraph, Digital Currency Group (DCG) has launched a new cryptocurrency mining subsidiary named Fortitude Mining, marking a strategic move to offer institutional exposure to a diverse range of mined crypto assets. Announced on January 29 via the X social media platform, Fortitude Mining emerges as a standalone entity, having previously been part of Foundry, a decentralized mining and staking service. The financial specifics of this acquisition remain undisclosed. Andrea Childs, who joined Foundry in 2020, has been appointed as the CEO of Fortitude Mining. This development may be linked to Foundry's broader restructuring efforts, which included a 16% reduction in its U.S. workforce in December to concentrate on its core Bitcoin (BTC) mining operations. Foundry currently operates the largest Bitcoin mining pool, contributing over 30% to the network's hashrate, with China's Antpool trailing at 17.8%. The Bitcoin mining sector has encountered renewed challenges following the network's fourth halving event in April 2024. Galaxy Digital reported $460 million in reverse mergers and acquisitions during the first half of 2024, predicting further industry consolidation as mining economics continue to pressure smaller players. Architect Partners also noted a surge in mergers and acquisitions among Bitcoin miners, driven by large companies seeking to expand data center capacity and secure cheaper energy resources. As reported by Cointelegraph, publicly traded miners have diversified their operations post-halving, with firms like MARA Holdings, Riot Platforms, and Hut 8 increasing their Bitcoin reserves. A report by Digital Mining Solutions and BitcoinMiningStock.io highlighted a significant trend in 2024, where many Bitcoin miners opted to retain a larger portion of their mined Bitcoin or refrained from selling altogether. The report also noted that four of the 16 largest Bitcoin holders are miners.