Evertas, a leading digital asset insurance company, has recently acquired Bitsure, a specialist in crypto mining insurance. This strategic move aims to expand Evertas’ coverage across multiple jurisdictions, providing vital support to mining operations and exchanges amidst the challenges posed by market forces and the FTX collapse.
The acquisition follows a successful partnership between Evertas and Bitsure, wherein Evertas became the crypto mining underwriter for the latter. The collaboration resulted in Arch Insurance International raising its coverage limits for mining operations to an impressive $200 million. Previously, Bitsure offered a $5 million insurance policy per location, with plans to broaden its coverage to other market spheres.
Strengthening Mining Operations Amid Market Turbulence
To further enhance its capabilities, Thomas Shewchuck, the President and co-founder of Bitsure, will assume the role of head of underwriting at Evertas. Leveraging Bitsure’s extensive 6% mining cover of the total Bitcoin network, this move is going to bolster Evertas’ offerings for mining-related insurance.
However, the complexities of crypto mining insurance are not to be underestimated, as pointed out by Evertas Chief Executive J. Gdanski. The unique nature of digital assets and various market forces can significantly impact the value of mining rigs, posing challenges for insurance companies.
Specialized Insurance Solutions Vital for Sustainable Growth
Specialized insurance coverage is essential due to the risks associated with digital assets. Especially considering the high costs of powerful mining equipment. The value and profitability of equipment are tied to mining difficulty. Therefore, an influx of miners competing for rewards can lead to lower income and project abandonment. As a result, it will create a challenging situation for both miners and insurers.
Despite these challenges, the acquisition of Bitsure by Evertas marks a significant step towards a comprehensive and robust insurance solution for crypto mining operations. As both parties collaborate and leverage their expertise, the alliance is poised to support miners through bearish markets without resorting to selling their Bitcoin reserves or shutting down operations.
Sarah Leon Continues as Regulatory Compliance Expert at Evertas
Evertas’ CEO and Co-Founder, J. Gdanski, praised Bitsure’s valuable contribution in fulfilling an unmet need within the crypto insurance landscape. Evertas now has the authority to write crypto-mining policies of up to $200 million per location. Besides, the acquisition significantly expands the capacity to support mining operations on a much larger scale than ever before.
Under the leadership of Thomas Shewchuck, who brings his vast experience in insurance brokerage and crypto mining, and with regulatory compliance expert Sarah Leon on board, Evertas is on its path to revolutionize crypto insurance and provide essential protection for mining operations of all sizes.