- According to Bankman, Mining firms are stacking up debts due to the crisis, and they’ve faced margin orders and defaults as a result.
FTX CEO Sam-Bankman Fried is willing to bail out struggling cryptocurrency mining firms. During an interview on Friday, the CEO discussed the contribution of mining firms to the ravaging dip that’s affecting organizations in the cryptocurrency industry. He decried how mining firms are using their rigs as collateral while applying for loans.
According to Bankman, Mining firms are stacking up debts due to the crisis, and they’ve faced margin orders and defaults as a result. Meanwhile, Statistical analysis has revealed how mining firms are swarming in debts after acquiring loans to build mining facilities in North America. Lately, the continent has emerged as a destination for mining companies because of its relaxed policy toward mining.
“There might come along a compelling opportunity for us — I don’t want to discount that possibility,” Bankman said.
Bankman Passionate About Crypto Industry
The CEO discussed the possibility of acquiring some of these firms to arrest the situation of seeing more businesses slide into liquidation. However, he conceded that the situation is a chance that his organization must embrace.
Nevertheless, Bankman-Fried disclosed that the chance to offer a bailout isn’t limited to mining firms alone. He illustrated how the company will be willing to engage other organizations within the sector.
Without a doubt, FTX has shown a high degree of commitment to rescue organizations in the industry. Yesterday, the firm announced an agreement with cryptocurrency lender BlockFi, to offer it $400 million as a credit facility. Also, the agreement included another possible $240 million.
Currently, BlockFi is battling a crisis due to the breakdown of the Terra ecosystem and 3AC. After the intervention, rumors emerged that FTX is considering the option to buy the crypto exchange.
Subsequently, The CEO of BlockFi, ZAC Prince swiftly dislodged the claims stating that the agreement included an option to buy based on the achievement of BlockFi amidst other considerations.
Additionally, another organization, Alameda Research which belongs to Bankman-Fried also helped the embattled Voyager Digital with a loan of about $500 million. Furthermore, it underlines the willingness of Bankman-Fried to assist struggling cryptocurrency organizations.
Through Alameda Research, Bankman-Fried also manages assets. Notably, Around May 2022, a firm in which Bankman-Fried owns its major shares acquired 7.6 percent in Robinhood stock.
His journey in the crypto space took an inspirational turn around 2018 when he attended a crypto conference in Macau. Inspired by the experience of the conference, he relocated to Hong Kong to establish FTX.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market.In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”