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The founder and CEO of the FTX cryptocurrency exchange has denied reports that the company is looking at the acquisition of mining companies stressed by the ongoing market conditions. This comes after FTX’s efforts to bail out struggling crypto firms such as Voyager Digital and BlockFi.
FTX is not interested in struggling crypto miners
Bankman-Fried took to Twitter to say that the company was not “really looking into the space.” He also said that he was unsure why these reports of FTX investing in mining companies were circulating on social media platforms.
The rumors of FTX looking into investing in the mining space started after Bankman-Fried held an interview with Bloomberg, saying that he did not want to downplay the “compelling opportunity” in the mining sector.
In the interview, the CEO said, “There might come along a really compelling opportunity for us – I definitely don’t want to discount that possibility.” It now seems that Bankman-Fried’s remarks during the interview were misinterpreted, and the CEO has not clarified that FTX is not interested in miners but was willing to hold talks with mining firms.
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In the interview with Bloomberg, Bankman-Fried also said that cryptocurrency miners did not align with the company’s strategy and that were no “particular reasons that we need to have, you know, an integration with a crypto miner.”
Current market conditions affect crypto miners
The speculations of FTX looking into mining companies come amid a fall in the crypto space. Bitcoin mining revenues have decreased significantly this year. The invasion of Ukraine by Russia has triggered a rise in energy costs, which has dealt yet another blow to miners.
The profitability of mining activities has also reached significant lows not seen since October last year. Profitability from Bitcoin mining activities now stands at $0.0956 per day for 1Th/s. This is an 80% drop from the 2021 high of $0.464.
The declining profitability of mining activities has also forced miners to start liquidating their holdings. Some firms have sold all the coins produced in May to help them meet their loan obligations and operating costs.
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