Bitdeer has launched a $250million fund to acquire distressed assets of bitcoin miners. This is according to Jihan Wu, the representative of the Bitcoin mining company. Bitdeer’s chief executive officer Matt Kong details that “opportunities” arise in “every cycle.”
Bitdeer wants to buy distressed Bitcoin miners’ machines at a discount price
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, a crypto mining company that Jihan Wu was the CEO of Bitmain, recently bought a vault in Singapore.
Bitcoin and cryptocurrency miners, in general, have been suffering from the crypto winter’s downturn. A report at the end June stated that 4 billion dollars in loans for bitcoin mining were in trouble. 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.”
Bitdeer wants to sign a Special Purpose Acquisition Company, (SPAC), deal worth $4 billion. But, Bitdeer’s deal with the blank checks firm has been delayed and the company applied for an extension. Kong claims that while the crypto miners may be in financial trouble, Kong’s firm still has an opportunity to purchase machines at a significantly lower 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.”
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