Bitdeer Will Contribute To Loan Program For Bitcoin Miners

Jihan Wu, chairman of bitcoin mining company Bitdeer, is launching an investment fund for bitcoin miners, Bloomberg has reported.

Bitdeer itself contributes an initial $50 million to the fund

Wu will aim to raise an additional $200 from venture capital firms and other mining companies after Bitdeer itself contributes an initial $50 million to the fund as part of a junior tranche.

The recent fall in the price of bitcoin, along with other variables including an increase in the price of energy globally, have made it difficult for bitcoin miners.

Compute North, a company that hosts bitcoin mining, filed for Chapter 11 bankruptcy last Thursday, noting in the filing that “no monies will be available for distribution to unsecured creditors after any administrative expenditures are paid.”

According to the initial bankruptcy petition, Compute North also asserted between $100 million and $500 million in projected liabilities and assets.

A new loan facility for bitcoin miners with a $300 million capacity was unveiled by Icebreaker Finance last week. This fund will only lend to businesses that have maintained “excellent treasury management and prudent power plans.”

“Recent market headwinds have caused lenders to pull back, while traditional financing vehicles have been slower to engage this sector,” said Sidney Powell, CEO and co-founder of Maple Finance.

Wu previously co-founded Bitmain, a provider of bitcoin mining equipment, and left the organization in early 2021.

Since the company launched a $4 billion SPAC merger with blank-check business Blue Safari Group Acquisition Corp. last year, it has been planning to go public. According to a U.S. Securities and Exchange Commission filing earlier this month, the deal’s deadline has been moved up three months, from September 14 to December 14.

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