The company has executed several credit lines and bailed out for firms around the crypto space
FTX and CEO Sam-Bankman Fried went on to bring relief to several crypto firms that were going through tough times given the extreme market conditions. Looking at these movements of the company, there were speculations and rumours all over that the Bahamian crypto exchange could now shift its focus towards crypto miners, but CEO Sam-Bankman Fried came in front and gave a statement about the matter.
SBF went on to Twitter on Saturday and, while clarifying the company’s position, stated that FTX is not looking into the crypto mining space. This statement also appeased the speculations all around that the crypto exchange firm is planning to explore options to acquire beleaguered crypto miners. FTX CEO said that he is not sure about the meme that is spreading all over depicting FTX and mining companies. The reality is that they are not looking into the mining space.
This trail of speculation came from the statement of Sam-Bankman Fried himself when in a recent interview, he said that he did not want to lose such compelling opportunities within the mining industry if there were any possibilities. This quote of the FTX founder, however, many had taken out of context and did not understand properly, made Bankman Fried come forward and clarify his statement. However, he meant to have conversations with mining companies about it, particularly planning to approach or acquire some crypto miners.
During the interview, SBF even stated that crypto miners did not fit into the core strategy of the company as well as he did not find coordination between companies from an acquisitions perspective. He said that he does not see if there is any specific reason that could compel them to integrate with some crypto miner.
As far as mining companies are concerned, it’s visible that they are also not going through good times, given their rates of terahash per second have seen massive drops. Currently, they are at the same level as they were in October 2020. Earlier it also reported that continuous bitcoin price drop caused many bitcoin miners to sell their bitcoin reserves in order to continue their mining operations and maintain liquidity. It was also reported that bitcoin mining loans total about $4 billion due to the drops in prices of bitcoin and mining rigs.
ALSO READ: The liquidation of Three Arrows Capital will swallow millions worth of its NFTs holdings
Source: https://www.thecoinrepublic.com/2022/07/05/crypto-miners-are-no-fit-for-the-companys-strategy-for-now-said-ftx-ceo-bankman-fried/