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SBF disputes that FTX is reviewing troubled crypto mining companies.

05-Jul-2022 By: Somesh Gaur
SBF disputes that FT

SBF disputes that FTX is reviewing troubled crypto mining companies.

According to Sam Bankman-Fried, there is no acquisition synergy and crypto miners do not fit into the company's primary goal.

Sam Bankman-Fried, the creator of the cryptocurrency exchange FTX, put an end to rumours that the business was considering buying struggling crypto mining firms by stating on Twitter on Saturday that they "aren't actually looking into the space."

The original message was that we *aren't* really looking into the space, as Bankman-Fried explained on Twitter on Saturday. "Actually not sure why the myth involving FTX and mining enterprises is growing," he said.

In an interview with Bloomberg on Friday, the founder of FTX stated that he did not want to rule out the prospect of a "compelling opportunity" in the mining sector, which sparked rumours that the company was looking for mining companies.

Mining loans are in trouble.

Bankman-Fried was questioned if he was investigating mining companies in the midst of a declining cryptocurrency industry that has seen Bitcoin mining income drop significantly this year. Energy prices have also increased dramatically as a result of the Russian invasion of Ukraine, which has a twofold effect on miners of all sizes.

In terms of daily dollars per terahashes per second, mining profitability has fallen to levels last seen in October 2020. The profitability of Bitcoin mining is currently $0.0956 per day for 1Th/s, down 80% from the peak of $0.464 in 2021.

According to a report from Bloomberg on June 24, there are up to $4 billion worth of loans for Bitcoin mining, many of which are now underwater due to the decline in the value of both bitcoin and mining rigs.

According to a report published this week, Bitcoin (BTC) mining revenue has been at year lows not seen since the middle of 2021, falling to $14.40 million on June 17.

Data from Arcane Research released in June indicates that public miners have been forced to start offloading their shares as a result of the industry's falling profitability. In May, it turned out that several of these companies sold all of their BTC production, perhaps to cover operating costs and debt repayments.


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