HomeCryptocurrenciesCrypto Billionaire Jihan Wu Setting Up Fund to Buy Distressed Bitcoin Mining...

Crypto Billionaire Jihan Wu Setting Up Fund to Buy Distressed Bitcoin Mining Assets

Many Bitcoin miners are in the process of liquidating their mining assets in an attempt to deal with the plunging price of Bitcoin and high energy costs. This led to a depression in the value of mining rigs and crypto billionaire Jihan Wu and his cloud mining platform Bitdeer are looking to take advantage of it.

Wu is known as the founder of Bitmain, a Beijing, China, based company specializing in the production of crypto-mining equipment. He recently left the company, which had close to $6 billion in revenue in 2021, and is now in charge of Bitdeer. 

Bloomberg reported on Tuesday that Wu is in the process of setting up a fund to “buy distressed Bitcoin mining assets.” Bitdeer will put in $50 million in the fund in the form of a junior tranche, taking over the risk in case of an unsuccessful venture, with hopes of attracting an additional $200 million from other investors.

Bitdeer’s CEO Matt Kong confirmed the news to Bloomberg, saying that the goal of the venture is to acquire “cheaper machines” and then run them in their facilities, located in the US and Norway, with “stable and cost-effective power purchase agreements.”

“There are opportunities in every cycle,” Kong added. “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.”

After a short uptick in mid-September, Bitcoin is now going through another rough stretch. It is currently trading for $18,972.70 per coin, down from this month’s high of $22,402.60.

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