From the start of the year, there has been a continuous decline in cryptocurrency prices. The high energy prices and China’s ban on bitcoin mining activities have created a lot of trouble for bitcoin miners. The prices of certain mining machines have shown a decline rate of up to 50%. And the miners are starting to sell their assets such as mining rigs at a high discount rate to combat losses. Most recently, the three largest US-based Bitcoin miners suffered losses of nearly $1 billion (USD). Still, the miners didn’t get out of the situation.
To improve the financial condition of bitcoin miners, Jihan Wu, founder of Bitdeer Group, decided to buy the assets from the miners. For the starting phase, he decided to invest $50 million (USD). For the second phase, he decided to raise the fund to $250 million (USD).
“We can buy the cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements,” Bitdeer Kong stated.
In 2021, Jihan Wu resigned from the CEO position at Bitmain due to clashes with another co-founder of Bitmain, Micree. In 2018, Bitmain was considered the world’s largest producer of Application-Specific Integrated Circuit (ASIC) chips, which are required for Bitcoin mining. Besides that, the company started to operate two of the largest Bitcoin mining pools, BTC.com and Antpool.
Later, Jihan Wu founded the Bitdeer group in 2020. The Singapore-based Bitdeer company has emerged as a leading Bitcoin miner platform that provides services across the United States and Norway. It is a mining platform where users are provided with facilities like cloud hosting solutions and digital currency mining.
Last year, Wu co-founded one of the largest Bitcoin mining machine manufacturers called Bitmain Technologies Ltd, which contributed nearly $5.6 billion (USD) in revenue generation. Recently, Wu purchased Le Freeport for $28.4 million (USD). Le Freeport is a “high-security storage and display facility in Singapore.”
Wu’s idea will help the distressed crypto miners financially. Recently, the transition of Ethereum to Proof-of-Stake has also affected the GPU platforms. The GPU units, which are used for mining cryptocurrency, are now facing a 10% decline from the past few weeks.
Matt Kong, CEO of Bitdeer, said that “There will be opportunities in every field. If you can time the market and enter at the bottom, and come out at the top, then you will make money. It works, especially for mining.”
