Applied Digital is buying up problematic assets of miners
Amid the difficult situation in the mining market, some companies see opportunities to buy cryptocurrency mining equipment at low prices. For example, Applied Digital is looking for distressed assets to acquire with the help of a fund. The plan is to raise $100 million.
The Highland Digital fund was created to pool funds from investors who own mining equipment and then split between the two companies. Applied Digital's benefit is that it will handle the placement of these devices. According to a spokesperson:
The market situation looks like a 90% discount. The opportunities are especially evident against the backdrop of last year's situation.
Thus, the difficulties experienced by companies such as Core Scientific and Argo Blockchain, for example, become opportunities for others to expand. There are indications that there will be even more discounted equipment on the market.
According to a spokesman for Applied Digital:
Creditors are seizing mining devices from debtors, so the bankruptcy of a number of both private and public companies is not out of the question soon.
Regarding the significant issue for many miners about the cost of electricity, he noted:
For customers, the cost of hosting will not exceed $0.07 per 1 kWh.