According to a representative of the bitcoin mining company backed by Chinese cryptobillionaire Jihan Wu, Bitdeer is in the process of setting up a $250 million fund to buy distressed assets from struggling bitcoin miners. Bitdeer CEO Matt Kong explains that “opportunities” present themselves in “every cycle”.
Bitdeer wants to acquire cheap machines from distressed Bitcoin miners
Bitdeer is setting up a fund to buy assets from financially distressed bitcoin miners, according to statements from Matt Kong to Bloomberg’s David Pan. Bitdeer is a crypto-mining operation backed by former Bitmain CEO Jihan Wu, and the company recently purchased a large-scale vault in Singapore.
Bitcoin and cryptocurrency miners, in general, have suffered from the downturn of the crypto winter. In late June, a report noted that $4 billion in Bitcoin mining loans were in distress. In mid-July, Cleanspark announced it had acquired 1,061 bitcoin miners at a discount and said the crypto winter had brought “unprecedented opportunities.” Five days ago, bitcoin miner Compute North filed for Chapter 11 bankruptcy.
Bitdeer CEO Matt Kong sees opportunities on the horizon, according to statements he made on Tuesday. “There are opportunities in every cycle,” Kong remarked. “If you can time the market and go in from the bottom, come out from the top, then you will make money. This works especially well for mining.
Currently, Bitdeer is looking to enter into a Special Purpose Acquisition Company (SPAC) deal for $4 billion. However, the deal with the blank check company was pushed back and the company requested an extension. Kong says that while crypto miners are in dire straits, the company has an opportunity to get machines at a much cheaper rate.
“We can buy the cheapest machines and run them in our existing facilities with stable and cost-effective power purchase agreements,” Kong added. “You will have the cash. »
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