- Gaurav Budhrani and Alan Konevsky left Goldman Sachs to join crypto mining firm PrimeBlock.
- The firm runs 12,000 bitcoin and ether mining machines.
- Budhrani and Konevsky listed four proof-of-stake blockchain protocols that retail investors are buying right now.
Gaurav Budhrani and Alan Konevsky are two former Goldman Sachs employees who moved into the crypto space a couple of years ago. They told Insider the exodus from traditional finance has continued in 2021 as institutional investment in crypto has surged.
“2021 is the first time that I’m starting to see institutional investors participate across the capital structure for bitcoin mining companies,” Budhrani, who is PrimeBlock’s chief executive, said. “You initially had a handful of names like Marathon, or Riot. But that’s definitely changed a lot over the last year or so – you’re starting to see institutional investors come in and provide capital.”
Crypto miners run computers that aim to solve complex mathematical problems. The first computer to reach a solution is awarded a block of cryptocurrencies.
PrimeBlock’s mining set-up focuses on the two largest cryptocurrencies by market capitalization: bitcoin and ethereum. They have deployed 12,000 crypto mining machines across facilities in Alabama, Georgia, Kentucky, and Tennessee. Konevsky, who is PrimeBlock’s chief legal officer, told Insider the firm currently mines five bitcoins each day – equating to nearly $290,000 at bitcoin’s current price of just over $57,500.
“There are three critical inputs in a crypto mining operation – capital, equipment, and energy,” Budhrani said. “Mining has become an industrial-scale operation.”
The two executives explained why there are more opportunities than ever in the North American crypto mining space, and listed four proof-of-stake protocols that retail investors are using to generate yields.
