HashRabbit Raises $500,000, Aims to Expand its Operations

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HashRabbit Raises $500,000, Aims to Expand its Operations

Looks like it is festive season for Bitcoin companies to hold fund raisers; one after another startups are doing it successfully. The new addition to the list is HashRabbit, a startup that supplies enterprise-focused software to facilitate the management and security of Bitcoin miners, has raised $500,000.

The company informs that most of the funds came from Tim Draper’s Draper Associates along with VegasTechFund, an investment firm run by Zappos founder Tony Hsieh. Talking to media professionals Chris Shepherd, co-founder and CEO of HashRabbit admitted that his company makes software for Bitcoin miners.

He further added that what that means is it is essentially the firmware that actually runs on the Bitcoin miner itself. Informing the media professionals he said that the company also has announced a partnership with mining hardware manufacturer Spondoolies-Tech, whose gear is compatible with HashRabbit’s management software.

Shepherd says that his company realized that firmware is the problem, and it needed to make a better system that allows for updates when zero days come out. According to him by working directly with hardware manufacturers on security issues, HashRabbit has gained credibility with companies such as Israel-based mining manufacturer Spondoolies-Tech.

Nonetheless, as he believes that Spondoolies-Tech is focused on hardware, his company can focus on the software and make sure it is consistently secure, fast and easily updated, it will be able to cater the requirements well. He also indicated that HashRabbit is working with other hardware manufacturers, but could not provide details at this stage.

Mining Bitcoin must be Made Economical

There is huge prospect for the ASIC for mining of Bitcoin; however, the industry has increasingly shifted from small home-based set-ups to serious enterprise operations based in the datacenter. Nonetheless, the company says that it is beneficial for it, as many of these mining operations are labor-intensive – something the startup has a solution for with its product.

Adding further Shepherd makes it clear that there are a lot of mining operations right now that have a lot of manpower, using a lot of people. He gave an example wherein he says that when a mining rig goes down or overheats, they have someone go and manually fix it.

Nonetheless, alongside the funding announcement, HashRabbit is making its software suite available to all Bitcoin miners. He says that the idea for HashRabbit came from running his own mining rig in a Las Vegas garage during the winter of 2013.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com