Chinese crypto billionaire Jihan Wu is setting up a new $250 million fund, which will buy mining rigs from troubled bitcoin miners as the market continues to stay far from its highs, Bloomberg reports, citing sources close to the matter.
The report says that the fund will be managed by Wu’s cryptocurrency firm called Bitdeer Technologies. The firm is also seeking another $200 million from family offices, alternative investment funds and venture capital firms. Matt Kong, Bitdeer CEO, said:
«There are opportunities in every cycle. If you can time the market and enter at the bottom, come out at the top, then you will make money. It works especially well for mining.»
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With the fund, Bitdeer wants to buy mining rigs at a steep discount. As Bloomberg notes, prices for certain types of mining rigs have dropped more than 50% amid the market downturn.