Crypto tycoon Jihan Wu’s crypto mining firm Bitdeer Technology Holdings is leading a US$250 million fund to acquire mining rigs from distressed miners amid the cryptocurrency bear market, according to Bloomberg.

See related article: China mining rig maker Canaan expands despite crypto winter 

Fast facts

• Bitdeer has invested US$50 million in it as a junior tranche — which will bear the brunt of the losses. Another US$200 million is targeted to be raised from family offices, venture capital funds, alternative investment funds and other mining companies, Bloomberg said.

• Bitdeer is a cloud mining service spun off from Chinese mining machine maker Bitmain, operating proprietary mining data centers in the U.S. and Norway. It has been seeking a U.S. listing in SPAC (special purpose acquisition company) trading since 2021.

• “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 told Bloomberg.

• Bitcoin miners have seen their lowest levels of profitability this year, amid the price of mining machines, rising energy prices and Bitcoin price woes, according to data from crypto mining services company Luxor Technologies.

• However, Bitcoin mining difficulty reached its highest level in September.

• Bitdeer is also expanding into the physical asset space amid the bear market. It is reportedly spending US$28.4 million buying Le Freeport, a maximum-security vault in Singapore, according to Bloomberg.

See related article: Bitmain cuts mining rig price amid crypto winter, energy costs