Mining
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Bitmain Founder Forms a $250M Fund to Buy Mining Devices from Financially Unstable Companies
Chinese billionaire and Bitmain co-founder Jihan Wu is creating a $250 million fund to buy mining devices from financially unstable bitcoin miners. Bloomberg writes about this with reference to representatives of Bitdeer Technologies, which is owned by Wu.
The company is reportedly looking to raise another $200 million from outside investors such as family offices, venture capital firms and alternative investment funds. Bitdeer CEO Matt Kong says the company sees the current state of the market as an “opportunity” for investment.
As Bloomberg notes, in a market downturn, highly leveraged miners are selling mining devices at a deep discount. In some cases, prices for some ASICs are falling by more than 50%. However, it remains unclear from which companies Bitdeer plans to buy mining equipment.
This is not Wu’s only investment this month. The editors wrote that earlier the founder of Bitmain acquired Le Freeport physical storage for $28.4 million on behalf of Bitdeer Technologies. Le Freeport will house works of art, precious stones, and gold and silver bars.
Recall that earlier the co-founder of the mining company Luxor Technologies, Ethan Vera, said that many lenders (Bable Finance, Galaxy Digital, bankrupt Celsius Network, BlockFi, Foundry Networks) are concerned that they have issued too many loans secured by mining devices. According to his calculations, in total, firms issued loans for $4 billion.
In the meantime, the Joe Biden administration allowed a ban on bitcoin mining in the US if such activity continues to cause significant damage to the environment.
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