In the world of Bit, from Satoshi Nakamoto's release of the Bit white paper, to V God's ETH craze, to the later DeFi, Non-Fungible Token, meme, L2, and even the current discussion of L3, so many stories combined with the bull and bear cycles of each period, how many people became overnight millionaires and how many people were stranded. Zhuoye has been involved in the blockchain track of Keyin Capital since 2020, participating in Keyin's many investments. In this journey, it has experienced the glory of the market, and in the trough, it has constantly adjusted its strategy with the team to find a way forward. Standing in this window of time with a promising future, the narrative in each cycle cannot be separated from the infrastructure - mining, which should be seriously concerned again.
Bull Market Illusion: Luck Covers the Depth of Cognition
Before 2017, the Bit market was in a frenzy, and every new project claimed to be the next "miracle". Keyin, with its keen industry insights, was the first to invest in projects such as Binance and QTUM. In the midst of a volatile market, the success of these projects was no accident, as the focus and execution of teams like Binance were the reasons for Keyin's firm support. As investments continued to expand to projects like Bitget and Republic, Keyin accumulated multiple benchmark cases. However, as primary investments gradually moved towards an oligopolistic market, truly core-competent projects began to become scarce. Although Keyin also actively participated in international projects such as JASMY and Klaytn, not all investments were able to meet expectations, and some overly optimistic investments were exposed to risks as the market matured.
The Hard Power of Mining: The "Protracted War" Across Cycles
Compared to traditional equity investment, mining is more like a "hardcore" infrastructure investment in the Bit field. Mining is not just a combination of equipment and electricity, but an understanding of the underlying logic of the Bit chain. Keyin has been deeply involved in the mining business since 2016, and with its deep understanding of the industry, it has achieved a calm crossing of cycles. The background of the founding partner Jianbo in Semiconductor Manufacturing International Corporation has given him a deep insight into the technology and market of the chip industry, and in 2018 he took the lead in investing in Sichuan Optimum to layout Bit mining chips, which has kept Keyin at the forefront of technology in the mining field. Mining not only brings stable returns, but also becomes a "stable weapon" to cross the bull and bear markets.
The Strategic Perspective of the Mining Industry: The Winning Weapon of the Upstream of the Industry Chain
Keyin Capital clearly recognizes that the value of the mining industry lies not only in the current returns, but also in its characteristics in dealing with cyclical fluctuations. The long-term existence of Bit has laid a solid foundation for the stable demand of the mining industry, and Keyin has been continuously deploying mining farms around the world to adapt to changes in the energy landscape and reduce operating costs. Through this global perspective, Keyin has ensured the low-cost advantage of its mining farms and is able to calmly cope with the challenges of the future increase in mining difficulty. Keyin has always believed that future investment opportunities are not in the seemingly glamorous projects, but in those with upstream industry resources and core competitiveness. This long-term layout is Keyin Capital's unique strategy in the Bit industry.
Bit Halving: New Opportunities in Industry Differentiation
Under the Bit halving effect, mining companies are gradually differentiated into three major camps, each adopting different coping strategies:
• North American listed mining companies rely on low-cost oil and gas resources, and the high leverage of the past has left some companies in crisis in the bear market. Facing market pressure, they are beginning to explore areas such as Bit second-layer networks and Non-Fungible Tokens to seek new growth points.
• Unlisted mining companies in South America, Central Asia and Africa have continued to expand after the halving, using high-power mining machines to gain market share and pursue short-term cost advantages.
• State-supported mining companies, through low-cost power resources, aim to quickly occupy the cost advantage and seek long-term strategic returns.
Keyin Capital's Zhuoye has keenly observed that mining companies in South America and Africa have become the biggest beneficiaries of this halving cycle due to their relatively lower costs. They have used their lower mining costs to rapidly expand and strengthen their market position. For Keyin, these mining projects are undoubtedly the protagonists of the next cycle, and they are not only market participants, but will also play the role of "industry cornerstones" in the halving cycle, laying a solid foundation for Keyin's long-term development in the mining industry.
The expansion of any industry cannot be separated from the development speed of the infrastructure, and the Bit industry, from being "sentenced to death" many times to its current prosperity, is more dependent on a solid foundation. Mining is not only an essential component of maintaining the Bit ecosystem, but also becomes a key force in stabilizing the market when there are divergences, laying the foundation for the long-term development of the industry. It is for this reason that the infrastructure of the Bit industry, including the expansion of computing power facilities, the layout of mining resources, and the innovative investment in energy and technology, is one of the core driving forces pushing the market forward.
As the currency price experiences fluctuations and the market continues to seek new growth points, the Bit industry is no longer solely dependent on short-term speculative profits, but is gradually returning to the accumulation of long-term value. At this stage, the further strengthening of the infrastructure becomes particularly important. Only by investing more resources in core infrastructure such as computing power, storage, and networks can the industry maintain stable development in the face of technological innovation and market demand. The future rate of increase will not only depend on the growth of a single project, but also on the resilience of the entire ecosystem, and this resilience is supported by a well-developed infrastructure.
Therefore, accelerating the infrastructure construction of the Bit industry, from distributed computing power to the optimization of decentralized network resources, is the key prerequisite for the recovery and rise of the entire market. Only by making the foundation of the entire ecosystem more solid can the Bit industry hope to move to a higher level in its future development, continuously attracting more mainstream capital attention and investment, and bringing more far-reaching innovation and transformation to the global finance, technology, and governance fields.
