SBF denies FTX is eyeing distressed crypto mining corporations

Sam Bankman-Fried mentioned that crypto miners didn’t match into the corporate’s core technique and there’s no synergy from an acquisition standpoint.

Sam Bankman-Fried, the founding father of crypto trade FTX, has calmed hypothesis that the corporate is exploring acquisitions of distressed crypto mining corporations, clarifying on Twitter on Saturday that they “aren’t actually trying into the area.”

“Actually undecided why the meme about FTX and mining corporations is spreading, the precise quote was that we *aren’t* actually trying into the area,” clarified Bankman-Fried on Twitter on July 2.

Hypothesis that the corporate was looking out for mining companies got here from an interview with Bloomberg on July 1, after the FTX founder mentioned he didn’t need to low cost the potential of a “compelling alternative” within the mining business, stating:

There may come alongside a very compelling alternative for us — I positively don’t need to low cost that chance.

Nevertheless, the quote seems to have been taken out of context, forcing SBF to make clear that the agency is “not significantly miners” however is “completely happy to have conversations” with mining corporations.

Bankman-Fried additionally acknowledged throughout the interview that crypto miners had no match into the corporate’s core technique and that he noticed no synergy from an acquisition standpoint.

I do not see any explicit causes that we have to have, you understand, an integration with a crypto miner.

“From a strategic perspective, there is no explicit apparent synergy essentially from an acquisition standpoint,” he added.

Mining loans beneath stress

Bankman-Fried was requested whether or not he was trying into mining companies amid a falling crypto market that has seen Bitcoin mining revenues fall sharply this yr.

On the identical time, the Russian invasion of Ukraine has additionally prompted power prices to skyrocket — inflicting a twin influence on miners, small and huge.

Mining profitability, which is a measure of day by day {dollars} per terahashes per second has reached lows not seen since October 2020, in accordance to Bitinfocharts. On the time of writing, Bitcoin mining profitability is $0.0956 per day for 1Th/s, down 80% from the 2021 excessive of $0.464.

A report from Bloomberg on June 24 revealed that there have been as a lot as $4 billion in Bitcoin mining loans, with a rising quantity now underwater as Bitcoin and mining rig costs have fallen.

Final week, Cointelegraph reported that Bitcoin (BTC) mining income has been mirroring yr lows not seen since mid-2021, with Bitcoin mining income dipping to $14.40 million on June 17.

Information from Arcane Analysis in June discovered that the deteriorating profitability of mining has pressured public miners to start out liquidating their holdings. It revealed that a number of of those companies offered 100% of their BTC manufacturing in Could — prone to cowl working prices and mortgage repayments.

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