Bitmain Founder Jihan Wu Setting Up $250M Fund to Buy Distressed Bitcoin Mining Assets: Report

Crypto billionaire Jihan Wu – the founder of bitcoin mining rig maker Bitmain – is setting up a $250 million fund to purchase distressed assets from mining firms, Bloomberg reported Tuesday.

Wu founded Bitmain in 2013, but left the company in early 2021 to lead its spin-off Bitdeer Technologies.

A representative of Bitdeer tells Bloomberg the company will initially put $50 million to work and plans to raise another $200 million from outside investors. “We can buy the cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements,” Bitdeer CEO Matt Kong said.

The collapse in the price of bitcoin (BTC) has combined with rising energy costs to leave many in the mining industry struggling to keep their heads above water. Data center operator Compute North last week filed for bankruptcy, noting long-term debts of $128.3 million sizably outweighing the company’s assets.

Bitdeer did not respond to CoinDesk’s request for comment.

Read more: Bitcoin Miner Marathon Digital Downgraded at BTIG on Headwinds From Compute North’s Bankruptcy