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According to a representative from the bitcoin mining company backed by Chinese crypto-billionaire Jihan Wu, Bitdeer is creating a $250 million fund to buy distressed assets from vulnerable bitcoin miners. Bitdeer CEO Matt Kong says that “opportunities” arise in “every cycle.”
Bitdeer is setting up a fund to buy assets from financially distressed bitcoin miners, according to statements Matt Kong made to Bloomberg’s David Pan. Bitdeer is a cryptominer backed by former Bitmain CEO Jihan Wu, and the company recently acquired a large-scale vault in Singapore.
Bitcoin and cryptocurrency miners in general have suffered during the crypto winter slump. In late June, a report noted that $4 billion in bitcoin mining loans were in distress. In mid-July, Cleanspark announced it was buying 1,061 bitcoin miners at a discount, saying 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 opportunity on the horizon, according to statements he made on Tuesday. “There are opportunities in every cycle,” Kong noted. “If you can time the market and go in at the bottom, come out at the top, then you will make money. It works especially well for mining.”
Currently, Bitdeer is looking to complete a SPAC (Special Purpose Acquisition Company) deal for $4 billion. However, the agreement with the blank check company has been pushed back and the company applied for an extension. Kong says that while crypto miners are in need, the firm has the ability to get machines at a much cheaper price.
“We can buy the cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements,” Kong added. “You want the cash flow.”
What do you think about Bitdeer creating a $250 million fund to buy distressed bitcoin miners? Let us know what you think about this topic in the comments section below.
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