Crypto miner maker CoinMine raises $2.5M in seed funding

Cryptocurrency mining manufacturer CoinMine has raised $2.5 million, after closing a successful seed funding round.

The funding round, led by M13 Ventures, featured contributions from investors including Gumi Crypto, Republic Labs, and Shervin Pishevar, who is known as an early investor in Uber.

The firm, which manufacturers both crypto hardware and software, said the funding round comes at a period of high growth for the company, which has seen 50% growth month-on-month since April of this year.

The company is also reporting strong engagement amongst its customers, with 10% becoming repeat buyers, and as few as 4% of its flagship CoinMine One devices being returned. Noting that the business is already generating cash, a CoinMine spokesperson told CoinDesk the firm would continue to reinvest earnings in developing the business.

The seed funding will help the firm continue to grow the business, with plans to hire new engineers to join the development team, with a focus on building new features and developing a broader product range for casual and hobby miners.

CEO Farbood Nivi said the funds would help the firm in its mission to introduce more consumers to mining cryptocurrency for the first time.

“This Seed round of $2.5M, led by M13, will accelerate our mission to make it easy for everyone to earn crypto for powering the crypto revolution,” Nivi said in a statement.

CoinMine mining gear runs from mobile apps on iOS and Android devices, allowing users to mine a range of cryptocurrencies including SegWitCoin (BTC), Monero (XMR), and Zcash.

Latif Peracha, speaking on behalf of investors M13 Ventures, said the funding was complementary to their strategy of investing in products targeting those new to mining cryptocurrency.

“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,” Peracha stated.

The news comes amid a revival in fortunes for the crypto mining sector, fueled by a return to growth in key cryptocurrency markets.