In recent months, some bitcoin (BTC) mining companies have shut down their devices to save energy and cushion losses. Others had no choice but to file for bankruptcy. Faced with the difficulty of mining companies, many investment funds are gradually raised to buy their facilities at a dirt cheap price. The latest is that of crypto billionaire Jihan WU and his company Bitdeer Technologies Holding Co. Indeed, the founder of Bitcoin Bitmain, a company specializing in the manufacture of mining platforms, has decided to raise 250 million dollars for the purchase of mining devices from miners at risk.
Jihan Wu throws wants to buy out struggling bitcoin miners
Jihan Wuthe founder of the mining manufacturing company Bitcoin Bitmain, is a leading figure in the crypto industry. It was in 2013 that he founded his company before leaving it 8 years later. Currently, the billionaire is focusing on his hosting company Bitdeer Technologies Holding Co. She reportedly intends to raise a investment funds totaling $250 million to buy the assets from struggling bitcoin mining companies. It is a spokesperson for the company who expressed this major project.
However, the $250 million will not be raised all at once. According to the representative of Bitdeer, there will be two phases. The structure undertakes to first invest the sum of $50 million that it will draw from its funds. Then the others $200 million come from outside investors. The objective with this fundraiser is to buy back certain devices from miners in difficulty at accessible prices: “We can buy the cheapest machines and run them in our existing facilities with stable and profitable power purchase agreements “, commented matt kong, the CEO of Bitdeer. He believes that the current bear market is an opportunity for the company he manages to enter from the bottom and emerge from the top with a capital gain on the initial investment.
Crypto market collapse and energy costs weigh on miners
Things are definitely not going well for bitcoin (BTC) miners who have to deal with the fall in the value of BTC and rising energy costs. In such a context, companies are fighting as best they can to avoid bankruptcy. Unfortunately, not all manage to find a second wind and end up filing for bankruptcy. The latest example is that of the data center operator Compute Norththe company had debts of more than 128 million, which far exceeded its assets.
The slowing down of bear crypto didn’t really help bitcoin mining companies. They had to sell off their devices to get their heads above water. Cleanspark had declared the purchase of nearly 1,061 low-cost miners. The company then said that it took advantage of the unprecedented opportunities offered by the crypto bear.
Jihan Wu’s company is currently seeking to establish an agreement with the white check company SPAC, for a value of 4 billion. Obviously, Bitdeer also wants to get out of the game by buying miners who can be connected at a low price.
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