Mike Bankman-Fried, the founding father of crypto exchange FTX, has calmed speculation that the organization is exploring acquisitions of distressed crypto mining companies, clarifying on Twitter on Saturday they “aren’t really searching in to the space.”
“Really unsure why the meme about FTX and mining companies is distributing, the particular quote was that people *aren’t* really searching in to the space,” clarified Bankman-Fried on Twitter on This summer 2.
Speculation that the organization was looking for mining firms originated from an interview with Bloomberg on This summer 1, following the FTX founder stated he didn’t wish to discount the potential of a “compelling opportunity” within the mining industry, stating:
“There might arrive a very compelling chance for all of us — I certainly shouldn’t discount that possibility.”
However, the quote seems to possess been removed from context, forcing SBF to explain the firm is “not particularly searching at miners” but is “happy to possess conversations” with mining companies.
er to become obvious I stated roughly “meh not particularly searching at miners, but sure, pleased to have conversations with any companies” https://t.co/liHKS2y06Z
— SBF (@SBF_FTX) This summer 1, 2022
Bankman-Fried also mentioned throughout the interview that crypto miners didn’t have squeeze into their core strategy and the man saw no synergy from your acquisition perspective.
“I aren’t seeing any particular reasons that we have to have, you realize, an integration having a crypto miner.”
“From a proper perspective, there is no particular apparent synergy always from your acquisition perspective,” he added.
Mining loans under stress
Bankman-Fried was requested whether he was searching into mining firms among a falling crypto market which has seen Bitcoin mining revenues fall dramatically this season.
Simultaneously, the Russian invasion of Ukraine has additionally caused energy costs to skyrocket — creating a dual effect on miners, big and small.
Mining profitability, that is a way of measuring daily dollars per terahashes per second has arrived at lows not seen since October 2020, according to Bitinfocharts. At time of writing, Bitcoin mining profitability is $.0956 each day for 1Th/s, lower 80% in the 2021 a lot of $.464.
A study from Bloomberg on June 24 says there have been around $4 billion in Bitcoin mining loans, with an increasing number now underwater as Bitcoin and mining rig prices have fallen.
Related: Bitcoin miner Mawson to defer all major capital expenses until market conditions normalize
A week ago, Cointelegraph reported that Bitcoin (BTC) mining revenue continues to be mirroring year lows not seen since mid-2021, with Bitcoin mining revenue dipping to $14.40 million on Next Month.
Data from Arcane Research in June discovered that the failing profitability of mining has forced public miners to begin liquidating their holdings. It says a number of these firms offered 100% of the BTC production in May — prone to cover operating costs and loan instalments.
