Evertas, a cryptocurrency insurance provider working with the Lloyd’s of London market, has acquired Bitsure, a specialist insurer of Bitcoin mining operations, for an undisclosed amount. Thomas Shewchuck, Bitsure’s co-founder and president, joins Evertas as head of underwriting.
Insurance products for crypto companies have been scarce in recent years due to the unique characteristics of digital assets. However, Evertas has received authority from Bermuda-based Arch Insurance to offer mining policies of up to $200 million per location, a significant increase from Bitsure’s previous $5 million per location. In December, bitcoin mining and hosting company Compass Mining created a $75 million insurance policy for mining equipment.
J. Gdanski, CEO of Evertas, commented that providing insurance for the specialized equipment used to mine bitcoin is similar to the straightforward type of property-risk cover for data centers, but the value of mining rigs is affected by several variables, making it a poorly understood risk. Thomas Shewchuck, Evertas’ new head of underwriting, added that the value of crypto mining equipment is also affected by mining difficulty, as more miners on the network mean fewer bitcoin awards.