Cryptocurrency Insurer Evertas Acquires Bitcoin Mining Insurance Specialist Bitsure
Evertas, the first digital asset insurance company has announced its acquisition of Bitsure, the first crypto mining insurance provider as it looks to expand its coverage in multiple jurisdictions.
The firm which ranks among the few to work with the Lloyd’s of London partnered with Bitsure last month to become its crypto mining underwriter, a deal that yielded in Arch Insurance International raising its coverage limits for mining operations to $200 million.
Previously, Bitsure offered an insurance policy of $5 million per location with plans to cover more spheres of market operations.
The new deal has been hailed by observers to give strength to mining operations and other players including exchanges as firms navigate the turbulent waters created by the collapse of FTX and generally poor market forces which pushed miners to the woods.
As part of the agreement, Thomas Shewchuck the President and co-founder of Bitsure would become the head of underwriting at Evertas in a bid to leverage on Bitsure’s 6% mining cover of the total Bitcoin network.
As a result of the nature of digital assets, providing the perfect insurance cover is not an easy task and many believe that the absence of deep coverage has led to the collapse of firms coupled with limited growth as most executives are left without the desired support.
Evertas Chief Executive J. Gdanski noted the complexities involved in crypto mining insurance although it may seem straightforward on paper.
According to him, market forces, including the underlying asset mined can significantly affect the value of the rigs and in turn, pose problems for insurance companies.
“Of all the crypto risks this is probably the most familiar to the conventional insurance market. Still, there’s
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