Evertas, the American crypto asset insurer with an island-based subsidiary licensed by the Bermuda Monetary Authority, has acquired Bitsure, the world’s first insurer dedicated to coverage for crypto-mining operations.

Launched in 2021, Evertas said, Bitsure bound its first mining policy in June 2022, followed by a year of rapid growth. Today, Bitsure policies insure about 6 per cent of the Bitcoin mining network.

Evertas said: “Crypto mining is the computer processor-intensive method by which most blockchains, including Bitcoin, verify transactions and issue new coins.

“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.”

Evertas chief executive and cofounder J. Gdanski said: “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.”

Mr Gdanski added that Evertas has authority to write crypto-mining policies up to $200 million per location, which is several times more than any other insurance provider, and 20 times more capacity than Bitsure had access to previously.

The company said Bitsure cofounder Thomas Shewchuck joins Evertas as head of underwriting. He started his career as a wholesale insurance broker in 2011 and began mining crypto currencies with his partners in 2019.

Mr 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 realisation 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.”

The company said Bitsure’s regulatory compliance expert and lead underwriter, Sarah Leon, reprises that role at Evertas.

Evertas cofounder and president Raymond Zenkich said: “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 specialised insurance and crypto-mining knowledge we saw in abundance at Bitsure, and we’re fortunate to have them joining our team.”

Evertas is a Chicago-based crypto asset insurance company focused on covering the full spectrum of crypto risks for institutional holders of crypto assets and blockchain technology, including exchanges, custodians, traditional financial institutions, funds, family offices, corporations, miners and ultra-high net worth individuals.

Evertas Insurance is licensed by the BMA as a Class 3A insurer.