Cryptocurrency Price Drop Carries Risks For Chip Producers

  • Yuri Molchan
    📰 News

    The head of DNB fund Anders Tandberg-Johansen says that mining equipment startups run a risk of going bankrupt unless the market of digital coins recovers

Cryptocurrency Price Drop Carries Risks For Chip Producers

According to Anders Tandberg-Johansen, the head of DNB fund, startups that produce mining equipment run a risk of going bankrupt unless the market of digital coins recovers.

In recent years, platforms like Ethereum and Bitcoin have raised their demands for hardware. However, since the price of virtual currencies plummeted early this year and still hasn’t quite made its way back up, people may soon find that buying mining gear is no longer profitable.

This circumstance has made the team of DNB TMT hedge fund, run by Tandberg-Johansen, worried – they currently have around $4.1 bln in management and they invest in techno firms.

The DNB fund is a top performing financial company that has been making 20 percent return per annum over the last decade. Recently it acquired a large stake in Lenovo Group Limited.  The head of DNB fund believes that this company has good potential, since the PC market has consolidated. Tandberg-Johansen is positive about the tech market going up in the medium term. However he believes that the situation in the cryptocurrency sphere leaves a lot to be desired.

Cover image via u.today
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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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