Coinmine, the producers of crypto mining hardware and software, announced a $2.5 million seed round of financing.
Led by Los Angeles-based M13 Ventures, Republic Labs, Gumi Crypto and early Uber investor Shervin Pishevar contributed funding, according to a statement made August 15.
According to a company representative, the financing comes amid a period of 50 percent growth month over month since April. Additionally, according to internal metrics, nearly 10 percent of customers become repeat purchasers, and fewer than 4 percent of Coinmine One mining devices are returned.
“We could be cash positive if we wanted to,” the representative said. Instead, the company looks to reinvest its earnings and employ the seed financing to build out its business.
The company plans to hire engineers with the capital. This team will build new features and expand the option to mine more cryptocurrencies for the hobbyist-level miner.
“[T]his latest round of financing will help us accelerate our mission of getting more people to experience how easy it is to earn Bitcoin and other cryptocurrencies,” said CEO Farbood Nivi. Indeed, Nivi said the product is built to be an entryway to crypto.
The machine is operable from Android and iOS mobile apps and updates over-the-air automatically, “like a Tesla.”
The company also reports the machine’s energy consumption dropped 30 percent. In addition to bitcoin, the machine also mines energy efficient coins like monero, zcash, grin and ethereum.
In June, the company announced a partnership with Compound Finance, Cred, and Blockfi allow users to earn a return on their mined crypto.
For their part, Latif Peracha of M13 Ventures said:
“At M13, we are focused on investing into new consumer behavior models and Coinmine’s product helps consumers realize new methods to generate assets and participate in this exciting new market.”
Coinmine One photo courtesy of Coinmine