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DCG Launches Fortitude: Diversifying Revenue with Venture Mining

Coin WorldWednesday, Jan 29, 2025 9:35 pm ET

1min read

Digital Currency Group (DCG) has launched Fortitude, a venture mining initiative aimed at expanding its revenue model. The new venture, Fortitude Mining, will mine Bitcoin in addition to pursuing a "venture mining" business model, which involves identifying and mining "high-growth digital assets in emerging proof-of-work ecosystems with attractive return profiles," according to Fortitude Mining CEO Andrea Childs.

Childs, who declined to disclose which tokens Fortitude will mine besides Bitcoin, emphasized the company's focus on maximizing investment returns. "We're not Bitcoin maximalists...but we're return maximalists," Childs said. "We look across the entire proof of work ecosystem to identify where we're going to get the highest return from our mining investment, and that's where we focus."

Fortitude will utilize its existing infrastructure and funds to scale its operations, with plans to reinvest its cash flows into new machine purchases and site acquisitions later this year. The mining operation is a wholly-owned DCG subsidiary spun out of the self-mining division of Foundry, a digital asset infrastructure firm founded in 2019.

Bitcoin mining operations are offering large profits in 2025 as the token's price hovers around the $100,000 mark—substantially higher than the average cost of mining per Bitcoin. The average cost of mining is roughly in the $26,000-$28,000 range per Bitcoin for most operators, according to CoinDesk. Meanwhile, Bitcoin is trading at $104,000, CoinGecko shows.

Potential profits from Bitcoin and venture mining operations could be a boon to Fortitude's parent company, DCG, which is navigating financial headwinds stemming from various lawsuits brought against it and its subsidiaries in recent years. Earlier this month, DCG settled a legal case brought against it by the Securities and Exchange Commission for $38 million. Meanwhile, its subsidiary Genesis reached a $2 billion settlement with the New York Attorney General last year.

Despite these challenges, DCG remains focused on its growth initiatives. A DCG representative denied the charges brought against it by the Securities Commissioner, stating that the settlement "allows [DCG] to focus on our growth initiatives and continue to embrace the positive momentum in the industry."

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