Bitdeer Jihan Wu will launch a $250 million fund to help miners
Mining services provider Bitdeer, led by ex-CEO of Bitmain Jihan Wu, will launch a $250 million fund to buy back assets from the industry’s “troubled” companies. Bloomberg writes this.
Bitdeer Technologies Holding Co. will set aside $50 million as a junior tranche and absorb all of the structure’s losses if the initiative fails. Partners – unnamed family offices, venture capital firms, alternative investment funds and mining companies – will provide the remaining $200 https://gagarin.news/news/what-are-domain-nfts/ million.
“There are opportunities in every cycle. If you can pinpoint the exact moment – entering in the lower phase and exiting in the higher – then you’ll make money. That works especially well for mining.”, – Bitdeer CEO Matt Kong stated.
The agency noted that bitcoin miners’ earnings remain near two-year lows amid a weakening environment, rising energy costs and increased competition.
The deteriorating operating environment has set the stage for mergers and acquisitions. As an example, Bloomberg cited CleanSpark’s purchase of an operating bitcoin mining operation from WAHA Technologies for $16.2 million.
“We can buy cheaper equipment and run it at our facilities with stable and cost-effective power purchase agreements,”, – Kong explained.
As a reminder, Wu left Bitmain in January 2021 with $600 million in payoffs, the BTC mining pool.com and Bitdeer. He later sold BTC.com to the online lottery service provider 500.com Limited.
In the fall of that year, Bitdeer announced a merger with SPAC, a Blue Safari Group Acquisition Corp.
Earlier, the mining company and provider of infrastructure solutions for cloud-based cryptocurrency mining Compute North filed for bankruptcy.
According to Arcane Research, an overwhelming number of publicly traded mining companies reported an unallocated loss on their balance sheets, despite a successful 2021.
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