According to a report by Bloomberg on Tuesday, bitcoin founder of mining hardware manufacturer Bitmain cryptocurrency billionaire Jihan Wu is setting up a $250 million fund to buy foreclosed assets from mining firms.
Wu founded Bitmain in 2013 but left the company in early 2021 to manage the company’s subsidiary Bitdeer Technologies.
Bitcoin Billionaire Jihan Wu To Raise $250 Million To Buy Assets Of Sunken BTC Mining Companies
A representative of Bitdeer told Bloomberg that the company will spend $50 million initially and plans to raise another $200 million from outside investors.
“We can buy cheaper machines and run them at our existing facilities with stable and cost-effective power purchase agreements,” said Matt Kong, Bitdeer CEO.
The collapse in the price of Bitcoin (BTC), combined with rising energy costs, has left many in the mining industry in a difficult position.
Data center operator Compute North filed for bankruptcy last week, saying its $128.3 million in long-term debt is vastly greater than the company’s assets.
This summer, Marathon Digital Holdings, Riot Blockchain, and Core Scientific reported total losses of approximately $1 billion.
According to data provided by Blockchain.com, the amount of revenues paid to Bitcoin miners dropped to $15.4 million on September 22, the lowest level since early July. By comparison, miners had earned $74.4 million in late October 2021.
At the same time, Bitcoin mining difficulty recently hit an all-time high, reaching 32.05 trillion hashes.
*Not investment advice.
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