Ledger Enterprise and Blockware Solutions have partnered to help secure the crypto mining sector at scale. The cooperation will enable Blockware’s client to leverage Ledger’s “world-class security and highly customizable governance workflows”, according to a press release shared with Bitcoinist.
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The crypto mining sector has experienced a massive expansion in the past years as more people adopt digital assets. In 2021, miners were forced to migrate out of China. The country imposed a full-on ban on its operations.
A lot of companies moved to the United States which has become a major hub in crypto mining. As the sector expands, so does the demand for security solutions at scale. Ledger and Blockware have set out to meet this demand. Warren Roger, Chief Financial Officer at Blockware Solutions said:
Ledger is a titan in the digital asset world and we are proud to partner with one of the industry’s best. Financial institutions are looking towards mining as a way to expand their exposure in cryptocurrencies, while looking for security, transparency, and a seamless experience that helps manage their investments in this emerging sector.
In the U.S., institutional exposure to Bitcoin and other digital assets is limited. Therefore, many investors turn to public mining companies, such as Riot Blockchain, Marathon, and others, to gain indirect exposure to the price of digital assets.
The performance of these companies is correlated to their underlying assets. Thus, securely holding these assets is fundamental to guaranteeing their sustainability. Roger added:
(…) It is imperative that guardrails are established to help protect investors as they engage in this new economy that offers exciting growth opportunities. We look forward to working with Ledger as we expand our operations to meet the needs of today’s investors.
Blockware’s clients will be able to access security infrastructure that will aid them in safely controlling their digital assets with a “multi-authorization self-custody management solution”, according to the press release.
In addition, the partners will collaborate on the Blockware Intelligence platform with popular analyst William Clemente. This collaboration will provide mining firms with educational material on how to protect their assets.
Crypto Mining Firms To See A Relief In 2022
Since the start of 2022, crypto mining companies have been trading in the red. These companies took a hit during this period as Bitcoin’s price trades flat, according to Arcane Research.
As seen below, Riot Blockchain, one of the largest digital asset miners, has benefited from this expansion. By using the RIOT’s stock price as a proxy for the sector, it’s easier to visualize this growth in the crypto mining sector.
RIOT’s price hit a multiyear high at around $80 before trending to the downside. The stock has been moving sideways ever since that dropped as Bitcoin and other largest cryptocurrencies.
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However, RIOT and other mining companies seem poised to benefit from further appreciation in the crypto market. With less uncertainty around the U.S. Federal Reserve (FED) monetary policy, this possibility seems to be gaining strength and could be moving into action. Arcane Research concluded:
Still, the miners have seen substantial recoveries as to the bitcoin price has rebounded over the past two weeks. Most of these stocks have followed each other closely, as they all are highly correlated to bitcoin.
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