Evertas has acquired crypto mining specialist Bitsure, in a deal that provides both organizations with elements each needs to truly meet their full potential. Together, we are the undisputed leader in Web3 and crypto mining insurance.
Ian Allison at Coindesk did a great job breaking the news here.
In that story, Evertas leadership alludes to the challenge of insuring crypto mining operations. To give a sense for why this is such a challenge, consider a hypothetical.
When insuring property, much of the difficulty is in accurately estimating the cost of replacing the insured item, because that cost is based on the item’s value—both today and at some point in the future.
Now, imagine the insured item—let’s call it a widget—acquires its value primarily on the income it’s expected to generate over the coming years. As challenging as that might seem, imagine that this income is a product of the value of a commodity that is and will continue to be highly volatile. What’s more, imagine that the income generated by this widget is also affected by the number of widgets out in the world in use.
Also, at varying points in the future—on dates that can only be roughly guessed at—every widget’s income generating ability will be cut in half. And to top it all off, these widgets are such recent innovations as to be almost entirely lacking in the kind of actuarial data from which useful predictions of future coverable events might be arrived at.
Talk about a moving target!
Given all that baggage, how eager do you think the notoriously conservative insurance industry will be to provide widget property coverage on any scale?
If you predicted not very, you’d be correct.
Of course, the widgets in this analogy stand for crypto mining rigs. The commodity is the asset being mined. Every other detail remains unchanged.
The simple truth is that insuring crypto mining operations is an intimidating prospect that demands deep knowledge of both insurance and mining—a combination of skills few possess. This has resulted in a the same dangerous coverage gap afflicting the broader Web3 ecosystem.
Thomas Shewchuck is a crypto miner with a strong background as a wholesale insurance broker. He got tired of struggling to find insurance to cover his own mining hardware, and decided to take a chance on starting a mining-dedicated insurance company able to fill that need. In 2021, Thomas and a partner launched Bitsure. By 2022 Bitsure had bound its first mining property policy. By mid 2023, Bitsure covered 6% of Bitcoin mining capacity. That’s an impressive rate of growth.
Thomas is now head of underwriting at Evertas. His unique skillset will be an invaluable addition to the team.
Bitsure’s Head of Compliance Sarah Leon will fill the same role at Evertas.
Miners serious about looking for coverage should begin the process by connecting with Evertas, both for the answers you can find and the education into the fine points of mining coverage you can gain. Contact us to get that conversation started.