Applied Digital Initiates $100M Fund to Acquire Mining Tools

U.S based provider of next-generation digital infrastructure Applied Digital has floated a dedicated fund to acquire mining tools for distressing platforms.

🔥Reach more than 5 000 000 real investors via Twitter influencer marketing! 🔥

According to the announcement, Applied Digital entered a partnership with one of its clients, General Mining Research (GMR) a Singapore-based infrastructure conglomerate to raise $100 million to purchase assets including mining hardware and digital infrastructure from troubled firms. 

Together, the duo will raise funds from investors who will in return have ownership of the acquired assets. This equipment will be hosted in Applied Digital’s data center and managed by Highland Digital, a newly created entity co-owned by Applied Digital and GMR. 

While speaking about the fund, Wes Cummins, CEO, and Chairman of Applied Digital says a lot of miners will go bankrupt in the coming months. Therefore the fund puts it in a position to capitalize on the situations and volatility of the market to acquire these mining tools.

“I get called multiple times a week because there are a lot of people in trouble”, Cummins added.

Crypto Firms Leverage Market Conditions to Consolidate Positions

Owing to the market conditions which have been made worse by the sudden collapse of FTX, Bitcoin mining hasn’t been as lucrative as it once was. These conditions have consequently led to the cheapening of these mining tools. The prices of these tools are now extraordinarily cheap compared to what it was during this period last year.

Several players in the industry are on the verge of bankruptcy and Applied Digital hopes to capitalize on this situation to grow its customer base and network.

Formerly known as Applied Blockchain, has broadened its services to include non-crypto assets after it shut down its mining operations in March. While leveraging on the market crisis that resulted in a liquidity crisis for many crypto firms, other firms with healthy balance sheets have seized the moment to consolidate their businesses.

Recently, renowned Bitcoin miner Crusoe Energy Systems acquired Great American Mining’s operational assets. As part of the agreement, a manufacturing facility in Ponchatoula, Louisiana will serve as Crusoe’s new site for research and development after it expanded its fleet by over 10 megawatts and about 4,000 ASIC.

🔥Reach more than 5 000 000 real investors via Twitter influencer marketing! 🔥