Venture capital company Digital Currency Group (DCG) has spun out a new cryptocurrency mining subsidiary, signaling its intent to provide institutional exposure to a diversified pool of mined crypto assets.
According to a Jan. 29 announcement on the X social media platform, Fortitude Mining has been established as DCG’s standalone mining business. Previously, the mining operation was part of Foundry, a decentralized mining and staking service.
Fortitude Mining’s website lists Andrea Childs as the CEO. Childs joined Foundry in 2020 before heading the new DCG subsidiary.
Source: Barry Silbert
The spinout of Fortitude Mining may have been part of Foundry’s broader restructuring plan. In December, the company laid off 16% of its US workforce to focus on its core Bitcoin (BTC) mining operations.
Foundry currently operates the largest Bitcoin mining pool, accounting for more than 30% of the network’s hashrate.
Foundry accounts for roughly 30.2% of the Bitcoin network hashrate. China’s Antpool is a distant second at 17.8%. Source: Hashrate Index
Related: Is cryptocurrency mining still profitable in 2025?
Bitcoin mining after the fourth halving
The Bitcoin mining industry has faced renewed challenges following the network’s fourth halving event in April 2024.
Galaxy Digital calculated $460 million in reverse mergers and acquisitions in the first six months of 2024, forecasting further industry consolidation in the year ahead as the economics of mining continues to squeeze smaller players.
Architect Partners also identified an M&A surge among Bitcoin miners as large companies sought to boost data center capacity and access cheaper energy resources.
As Cointelegraph reported, publicly traded miners have also diversified their business post-halving, with companies such as MARA Holdings, Riot Platforms and Hut 8 choosing to build up a bigger Bitcoin stockpile.
“In 2024, a notable shift emerged among Bitcoin miners, with many opting to retain a larger portion of their mined Bitcoin or refraining from selling altogether,” according to a Jan. 7 report by Digital Mining Solutions and BitcoinMiningStock.io.
According to the report, four of the 16 largest Bitcoin holders are miners.
Related: MARA’s ‘Trump 47’ block highlights anticipation for pro-Bitcoin president