Catenaa, Wednesday, June 25, 2025- A Russian energy company has launched the country’s first closed-end mutual investment fund tied to Bitcoin mining, signaling a growing institutional embrace of digital assets in the country.
The fund, named Crypto Factory, was developed by Penza-based Power Systems in collaboration with financial management firm Finam.
The $11 million fund, targeting qualified investors only, will invest in powering Bitcoin mining rigs using natural gas. The mined BTC will be sold, and proceeds will be paid to investors quarterly, with an expected annual return of 49%, according to the firms. Interim payments are projected at 10% annually.
The minimum investment threshold is 5 million rubles ($63,700), with shares not to be traded on secondary markets. Fund participants will also receive regular analytics and gain access to live CCTV feeds monitoring the mining operations.
The fund will run for five years, with Power Systems projecting profitability as long as Bitcoin prices remain above $35,000.
Power Systems, which has pivoted toward crypto mining using flared gas from oil drilling operations, claims the method lowers energy costs and minimizes environmental impact. he fund utilizes the closed-end model, issuing a fixed number of shares only during its initial offering.
The move comes as Russian authorities become more receptive to crypto-linked financial products.
The Central Bank recently approved crypto derivatives for qualified investors, and the Moscow Exchange launched its first Bitcoin futures contract, tied to BlackRock’s iShares Bitcoin Trust ETF.
