Bitcoin Capital, the closed end fund managed by Max Keiser and BnkToTheFuture CEO Simon Dixon has achieved its goal of raising $1 million. Holding a crowdfunding campaign on the BnkToTheFuture platform, Bitcoin Capital sold a 50% of the fund to new investors.
Technically being called a closed end fund, Bitcoin Capital is a hybrid financial scheme. Following the recapitalization, the fund will be involved in venture capital, investing in cryptocurrencies, as well as in bitcoin mining, with dividends paid to shareholders being made in bitcoin. A portion of the future mining business comes from previous assets held by Bitcoin Capital before the current recapitalization. Overall the crowdfunding campaign is being marketed as an opportunity to invest in the entire cryptocurrency sector.
As a fund, Bitcoin Capital includes a 50% performance fee that it collects from dividends and appreciation of investments in cryptocurrencies and startups they invest in. In terms of the mining business, Bitcoin Capital expects to send investors daily dividend distributions from mining profits.
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One area where Bitcoin Capital aims to provide domain expertise and value to their investors is via the venture capital portion of the business. Speaking to Simon Dixon, he explained to Finance Magnates that Bitcoin Capital will be investing in firms that are using the blockchain as a foundation of their business. Dixon referred to these firms as “Solving big problems using the technology of the blockchain”. As an example of companies they would be interest in, Dixon cited firms that are able to reduce fees fro remittance or using the blockchain for handling record keeping.
In terms of what crypto startups would gain by partnering with Bitcoin Capital, Dixon explained that the main value they bring to the table is marketing power. In addition, both Keiser and Dixon are expected to be able to provide firms with “connections to the entire industry” to assist in growing their businesses.
Like other campaigns on BnkToTheFuture, Bitcoin Capital crowdfunding was also open to investments made with cryptocurrencies. According to Dixon, about 20-25% of the $1 million raised came from crypto payments.