According to a representative from the bitcoin mining company backed by the Chinese crypto billionaire Jihan Wu, Bitdeer is crafting a $250 million fund to buy distressed assets from embattled bitcoin miners. Bitdeer’s chief executive officer Matt Kong details that “opportunities” arise in “every cycle.”
Bitdeer Wants to Acquire Cheap Machines From Distressed Bitcoin Miners
Bitdeer is setting up a fund to purchase assets from financially distressed bitcoin miners, according to statements Matt Kong made to Bloomberg’s David Pan. Bitdeer is a crypto mining operation backed by former Bitmain CEO Jihan Wu and the company just recently purchased a large-scale vault in Singapore.
Bitcoin and cryptocurrency miners, in general, have been suffering from the crypto winter’s downturn. At the end of June, a report noted that $4 billion in bitcoin mining loans were in distress. In mid-July, Cleanspark announced it acquired 1,061 bitcoin miners at a discount and said the crypto winter has brought “unprecedented opportunities.” Five days ago, bitcoin miner Compute North filed for Chapter 11 bankruptcy protection.
Bitdeer’s 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 enter at the bottom, come out at the top, then you will make money. It works especially well for mining.”
Presently, Bitdeer is looking to complete a Special Purpose Acquisition Company (SPAC) deal for $4 billion. However, the deal with the blank check firm has been pushed back and the company filed for an extension. Kong says while crypto miners are in distress, the firm has the opportunity to get machines at a much cheaper rate.
“We can buy the cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements,” Kong added. “You’ll have the cash flow.”