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A Russian energy company has introduced the country’s inaugural closed-end mutual investment fund (CEF) focused on bitcoin mining.
The Russian publication Vedomosti reported that the fund is named Crypto Factory. It is a creation of the Penza-based gas power unit provider Power Systems and the financial management firm Finam.
Access to the fund will be restricted to qualified investors. The capital raised will be utilized to power BTC mining rigs at facilities that operate using natural gas.
The operators of the fund will subsequently sell the Bitcoin (BTC) they extract and distribute regular returns to the investors.
Power Systems’ Bitcoin mining rigs. (Source: Power Systems Crypto/Instagram)
Russian Power Firm’s BTC Mining CEF
In the realm of finance, CEFs typically denote investment funds that issue a fixed number of shares only once, generally during an initial offering.
In contrast to conventional open-ended funds, their issuers do not continuously create or redeem shares. Instead, CEF shares are traded on a stock exchange, similar to individual stocks.
Power Systems indicated that it would provide investors with analytical data. It will also grant them access to CCTV feeds that oversee operations at the mining facilities.
The duration of the fund is five years, with an initial capital of 850 million rubles (approximately $11 million). The company stated that potential investors must contribute a minimum of 5 million rubles ($63,719) to participate in the fund.
The energy company claims its fundamental financial model anticipates a return of 49% annually. It also assured 10% per year in interim payments, distributed quarterly.
Finam noted that the shares would not be available on secondary markets. It mentioned that its commission fee would be 1% of the average annual value of the fund’s net assets.
The #crypto market is down again today, and #BTC fell below $105,000. The market is likely to be affected by the #US Fed meeting and the US involvement in #Israel’s attack on #Iran.#Bitcoin #ETHhttps://t.co/rKhcwcEJXl
— Cryptonews.com (@cryptonews) June 18, 2025
The #crypto market is down again today, and #BTC fell below $105,000. The market is likely to be affected by the #US Fed meeting and the US involvement in #Israel’s attack on #Iran.#Bitcoin #ETHhttps://t.co/rKhcwcEJXlInvestors ‘Won’t Make Money if BTC Prices Drop Below $35k’
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An executive from Power Systems stated that the fund would achieve a break-even point if Bitcoin prices do not decline below $35,000 over the next five years.
Provided that BTC prices remain above this threshold, investors could anticipate profits from their investments, the company indicated.
The precise cost of mining BTC in Russia is not well-defined, as electricity prices differ across regions.
Experts noted at the conclusion of the previous financial year that US miners incurred an average expense of $82,162 to mine one BTC.
Watch: The EU proposed severing decades-old energy relations with Russia by implementing legally binding measures to cut off its imports of Russian gas and liquefied natural gas imports by the end of 2027 https://t.co/u2PZht3lCh pic.twitter.com/2awYRKnktV
— Reuters Business (@ReutersBiz) June 18, 2025
Russia: Growing Bullish on Bitcoin?
Having previously maintained a cautious stance regarding investor access to crypto-related financial products, Moscow has adopted a notably more optimistic approach in 2025.
At the end of May, the Russian Central Bank permitted financial institutions to provide qualified investors with access to crypto derivative products.
Earlier this month, the Moscow Exchange commenced offering a Bitcoin futures contract product for qualified investors.
This product is associated with BlackRock’s iShares Bitcoin Trust ETF (IBIT). It represents the exchange’s first crypto-related offering.
Founded in 2005, Power Systems has recently shifted its focus to gas-powered crypto mining operations, utilizing associated gas.
This gas is often released during oil drilling activities. If drillers cannot find an immediate application for it, they typically flare it on-site.
The company asserted that mining BTC at gas fields “helps reduce costs.” It added that this approach not only lowers mining expenses but also contributes to minimizing miners’ carbon footprints.
The post Russian Power Firm Launches Bitcoin Mining Mutual Investment Fund appeared first on Cryptonews.
