Coinmine, Inc., the creator of the Coinmine One cryptocurrency mining device, has raised $2.5 million in a funding round led by Los Angeles-based M13 Ventures with participation from Republic Labs, Gumi Crypto, Canaan Beta and early Uber investor Shervin Pishevar, the company’s CEO and co-founder, Farbood Nivi, told Bitcoin Magazine.
The new funding round brings the total amount raised by Coinmine to $4.5 million. Early backers of the startup include Coinbase Ventures, Social Leverage, Wonder VC, Arrington Capital and angel investors including Balaji Srinivasan, co-founder of Earn.com, and Brian Norgard, chief product officer of Tinder.
Launched in November 2018, California-based Coinmine is the maker of the Coinmine One, a cryptocurrency miner targeted at mainstream users. The miner has an accompanying mobile app which allows users to set up, control and keep track of their miner’s activity.
At launch, the Coinmine One was able to mine monero, zcash, grin and ether, and in June 2019, the company added the ability for users to receive payouts in bitcoin. The device doesn’t mine bitcoin directly but instead algorithmically selects “whatever converts best to bitcoin.” These bitcoin payouts are calculated based on “current market prices,” Jinny Kang, head of public relations and partnerships at Coinmine, told Bitcoin Magazine.
Since April 2019, the company has been growing over 50 percent month-over-month only from word of mouth, Nivi said. He declined to share specific sales or revenue figures but said that the company was on track to beat its 2019 sales targets.
Nivi also said that the company will use the capital injection to expand the cryptocurrencies available through the device, add new services and ship over-the-air updates with improvements like increased hash power and energy efficiency.
