Crypto Billionaire Jihan Wu Sets Up $250 Fund to Purchase Assets from Struggling Bitcoin Miners

UTC by Ibukun Ogundare · 3 min read
Crypto Billionaire Jihan Wu Sets Up $250 Fund to Purchase Assets from Struggling Bitcoin Miners
Photo: Depositphotos

According to the report, Bitdeer Technologies, owned by Wu, will contribute $50 million to the $250 million fund.

Crypto billionaire Jihan Wu is reportedly setting up a $250 fund targeted at distressed assets from bleeding Bitcoin miners amid the crypto market’s steep drop. This year has seen significant declines across various cryptocurrencies, including leading assets like BTC and ETH. Amid the industry challenge, Wu is setting up the $250 fund to purchase assets from mining firms in distress at a discount. For context, the crypto billionaire founded bitcoin mining rig maker Bitmain in 2013. However, he left the company in early 2021 after a power struggle between the two co-founders. Then Wu began to lead its spin-off Bitdeer Technologies.

Wu Is Setting Up a $250 Fund to Buy Distressed Bitcoin Mining Assets

According to the report, Bitdeer Technologies, owned by Wu, will contribute $50 million to the $250 million fund. The company’s investment will be part of a junior tranche which exposes it to first-hand risk if the fund loses money. To complete the fund set-up, Wu aims to raise the remaining $200 million from external investors like venture capital firms. Family offices, alternative investment funds, and other mining companies can also contribute to the fund. Bitdeer CEO Matt Kong stated:

 “We can buy the cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements.”

It is currently not a good time for Bitcoin miners due to the crypto price fall and increasing energy costs. With Bitcoin miners struggling to keep their heads up, Wu is ready to leverage their distresses with the $250 fund. Many mining companies went public in 2021 amid the buzz. The year ended with 16 operations on the Nasdaq. With the turnaround in the industry, the top three publicly traded mining companies are now significantly down in their market valuations. Marathon is down 70% in its YTD record, Riot has plunged 69% over the same period, and Core Scientific has lost 87% since January. Last week, data center Compute North filed for bankruptcy as its long-term debt outweighs its assets. Chief financial officer Harold Coulby noted that the company’s debt is $128.3 million.

Bitdeer Buys Le Freeport

Bitdeer has always managed to make progress across different areas. The company recently bought physical safety vault Le Freeport for more than $28 million. Bloomberg revealed the vault purchase, adding that Le Freeport is a repository for precious gems and fine arts. Additionally, it is also a storehouse for gold and silver bars, serving many corporate clients. Word on the street is that Bitdeer has big plans ahead for purchasing the vault.

During the Bitcoin buzz in 2021, miners ordered more machines as they adopted aggressive growth strategies.

Altcoin News, Bitcoin News, Blockchain News, Business News, Cryptocurrency news
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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