SBF Denies FTX Is Looking To Buy Distressed Crypto Mining Firms

SBF Denies FTX Is Looking To Buy Distressed Crypto Mining Firms

Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has quelled speculation that the company is exploring acquisitions of struggling cryptocurrency mining companies, clarifying on Twitter on Saturday that they are “really not interested in space.”

“I’m really not sure why the meme about FTX and mining companies is spreading. The actual quote was that we’re not actively looking in the space,” Bankman-Fried clarified. on Twitter on Saturday.

Speculation that the company was hunting for mining companies emerged from an interview with Bloomberg on Friday, after founder FTX said he did not want to rule out the possibility of a “compelling opportunity” in the mining industry.stating:

“There could be a really compelling opportunity for us, I don’t want to rule that out.”

Nevertheless, the quote appears to have been taken out of context, forcing SBF to clarify that the company is “not particularly looking for miners” but is “happy to have talks” with mining companies.

Bankman-Fried also stated during the interview that cryptocurrency mining companies had no place in the company’s core strategy and that he did not see any synergies from an acquisition point of view:

“I don’t see any particular reason why we need to have, you know, an integration with a cryptocurrency miner.”

“From a strategic point of view, there is no obvious synergy from an acquisition point of view,” he added.

Mining loans are under pressure

Bankman-Fried was asked if he was looking for mining companies amid a declining cryptocurrency market. which has seen bitcoin mining revenue drop sharply this year.

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At the same time, The Russian invasion of Ukraine has also sent energy costs soaring, causing a double whammy for miners large and small.

Mining profitability, which is a measure of daily dollars per terahashes per second, has hit lows not seen since October 2020, according to Bitinfocharts. At the time of writing, Bitcoin mining profitability is $0.0956 per day per 1Th/s, down 80% from the 2021 high of $0.464.

A June 24 Bloomberg report revealed that there were up to $4 billion in loans for bitcoin mining, and that the number underwater is growing as bitcoin and mining rig prices fall.

Last week, Cointelegraph reported that bitcoin (BTC) mining revenues have been reflecting yearly lows not seen since mid-2021; Bitcoin mining revenue fell to $14.40 million on June 17.

Data from Arcane Research in June found that the deterioration of mining profitability has forced public miners to start liquidating their holdings. He revealed that several of these companies sold 100% of their BTC production in May, likely to cover operating costs and loan payments.

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