SBF denies FTX is eyeing distressed crypto mining companies

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

“Actually undecided why the meme about FTX and mining firms is spreading, the precise quote was that we *aren’t* actually wanting 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 wish to low cost the potential for a “compelling alternative” within the mining trade, stating:

“There would possibly come alongside a very compelling alternative for us — I undoubtedly don’t wish 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 notably miners” however is “completely happy to have conversations” with mining firms.

er to be clear I mentioned roughly “meh not notably miners, however positive, completely happy to have conversations with any firms”

— SBF (@SBF_FTX) July 1, 2022

Bankman-Fried additionally acknowledged through 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 specific causes that we have to have, you understand, an integration with a crypto miner.”

“From a strategic perspective, there isn’t any specific apparent synergy essentially from an acquisition standpoint,” he added.

Mining loans underneath stress

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

On the similar time, the Russian invasion of Ukraine has additionally triggered power prices to skyrocket — inflicting a twin impression on miners, small and enormous.

Mining profitability, which is a measure of each day {dollars} per terahashes per second has reached lows not seen since October 2020, in line with 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.

Knowledge 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 bought 100% of their BTC manufacturing in Might — prone to cowl working prices and mortgage repayments.

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