A representative of the bitcoin mining company backed by Chinese crypto-billionaire Jihan Wu said Bitdir is working on a $250 million fund to buy distressed assets from bitcoin miners. BitDeer CEO Matt Kong detailed that “opportunities” arise in “every cycle.”
BitDeer wants to find cheap machines for worried bitcoin miners
According to Matt Kong’s statement to Bloomberg’s David Pan, BitDeer is setting up a fund to buy assets from struggling bitcoin miners. Bitdir is a crypto mining venture backed by former Bitmain CEO Jihan Wu, and the company recently purchased a large-scale vault in Singapore.
Bitcoin and cryptocurrency mining have generally been suffering from the crypto winter slump. In late June, a report indicated that $4 billion in bitcoin mining loans were at risk. In mid-July, CleanSpark announced that it had acquired 1,061 bitcoin miners at a discount, saying that the crypto winter has brought “unprecedented opportunities.” Five days ago, bitcoin miner Compute North filed for Chapter 11 bankruptcy protection.
Bitdeer CEO Matt Kong sees opportunities on the horizon, in a statement on Tuesday. “There are opportunities in every cycle,” Kong said. “If you time the market and get in at the bottom, get out at the top, then you’ll make money. It works especially well for mining.
Currently, BitShares is looking to complete a $4 billion Special Purpose Acquisition Company (SPAC) deal. But the deal with the blank check firm was pushed back and the company filed for an extension. Kong says that while crypto miners are under pressure, the firm has access to machines at very cheap prices.
“We can buy the cheapest machines and run a stable and cost-effective power purchase agreement in our existing facilities,” Kong added. You will have cash flow.
What do you think about Bitdeer setting up a $250 million fund to buy distressed bitcoin mining assets? Let us know what you think about this in the comments section below.
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