FTX CEO Denies Rumors of Buying Crypto Mining Firms

Sam Bankman-Fried, the CEO of FTX and Alameda Research, says crypto miners don’t fit his company’s strategy.

The outspoken CEO sees no synergy and therefore no argument for a possible acquisition of wandering crypto miners. “We’re not really looking at that industry right now,” Bankman-Fried said on Twitter.

“I don’t want to exclude anything”

The rumors of FTX taking over a mining company arose after a interview from Bankman-Fried with Bloomberg. In this, Bankman-Fried indicated that he did not want to rule out in advance that his company would take over a miner if a “very attractive” opportunity arises. To which he adds on Twitter that they are not specifically looking for mining companies at the moment, but are open for a conversation.

From a strategic perspective, Bankman-Fried is not very enthusiastic about the possible acquisition of a mining company. “From the perspective of acquiring a mining company, there is little to no apparent synergy with the rest of our businesses,” said FTX’s CEO. All things considered, the chances of Bankman-Fried and his associates taking over a faltering crypto miner any time soon seem slim.

Miners’ profit margins under considerable pressure

The mining industry is having a really hard time right now. After some fantastic months in the last bull run, the industry has been struggling for some time now. The revenue per terahash has fallen to lows that the industry has not seen since October 2020. Miners today earn about 80 percent miner per terahash than during the peak of 2021.

Read Also:  Music that evokes the end of the world

Those declines in revenue have even prompted some miners to sell their Bitcoin reserves. A few miners had to say goodbye to 100 percent of their Bitcoin reserves in the past period. Something that no one would have dared to predict a few months ago. From that perspective, it is not surprising that Sam Bankman-Fried is currently not eager to enter the mining industry.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here