Crypto insurance company Evertas has acquired Bitsure, an insurer dedicated to coverage for crypto mining operations.
“Crypto mining is the computer processor intensive method by which most blockchains, including Bitcoin, verify transactions and issue new coins,” Evertas explained.
The firm continued, “Multiple factors combine to make insuring mining equipment significantly more complex than insuring network data centres or other operations with large concentrations of computer hardware. Consequently, property insurance protecting crypto mining operations has been difficult to get.”
Launched in 2021, Bitsure bound its first mining policy in June of 2022, which was followed by a year of growth. Now, according to the firm, its policies insure about 6% of the Bitcoin mining network.
Evertas CEO and Co-Founder J. Gdanski, commented, “Bitsure is a product of smart and eager entrepreneurs who built a great company fulfilling a critical yet mostly unmet need.
“As a result, Bitsure quickly grew to the point where they needed help scaling—not just from an insurance capacity perspective but also from a team and resources perspective. These are all things Evertas has to offer.
“In joining forces, Evertas benefits from the addition of key personnel and their deep understanding of mining, mining risks, and the broader Web3 ecosystem.”
Gdanski added that Evertas has the authority to write crypto mining policies up to $200 million per location, which is several times higher than any other insurance provider, and 20 times more capacity than Bitsure had access to previously.
Bitsure Co-Founder, Thomas Shewchuck, will join Evertas as head of underwriting. Shewchuck said, “Not long after launching Bitsure, we collaborated with Evertas on multiple underwriting projects, where it was readily apparent that together, there was real synergy. That realization soon led to conversations about merging our operations.
“The combination of Bitsure’s expertise and the unmatched insurance capacity Evertas has access to is a game changer for crypto mining operations of all sizes.”
Shewchuck started his career as a wholesale insurance broker in 2011 and began mining cryptocurrencies with his partners in 2019.
Meanwhile, Bitsure’s regulatory compliance expert and lead underwriter, Sarah Leon, will reprise that role at Evertas.
Evertas Co-Founder and President, Raymond Zenkich, commented, “The Bitsure team saw the huge insurance gap afflicting a vibrant but poorly understood market and decided to build a solution. It’s a very relatable story, because it describes our origin as well.
“Only a handful of people possess the kind of specialized insurance and crypto mining knowledge we saw in abundance at Bitsure, and we’re fortunate to have them joining our team.”
