Crypto billionaire Jihan Wu – the founder of bitcoin mining rig maker Bitmain – is setting up a $250 million fund to purchase distressed assets from mining firms, Bloomberg reported Tuesday.
Wu founded Bitmain in 2013 but left the company in early 2021 to lead its spin-off, Bitdeer Technologies.
A representative of Bitdeer tells Bloomberg the company will initially put $50 million to work and plans to raise another $200 million from outside investors. "We can buy the cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements," Bitdeer CEO Matt Kong said.
The collapse in the price of bitcoin (BTC) has combined with rising energy costs to leave many in the mining industry struggling to keep their heads above water. Data center operator Compute North last week filed for bankruptcy, noting long-term debts of $128.3 million sizably outweighing the company's assets.
Bitdeer did not respond to CoinDesk's request for comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.