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SBF makes it clear: FTX does not want to take over crypto mining companies



 Sam Bankman-Fried, the founder of crypto exchange FTX , has quashed speculation that the company is looking to buy up troubled crypto mining companies. On Saturday , he clarified on Twitter that the company was "not really looking into this area".


"I'm really not sure why the meme about FTX and miners is so widespread. The actual quote was that we *don't* really look into this space," Bankman-Fried tweeted Saturday.


In an interview with Bloomberg, it was rumored that the company was looking for mining companies. There, the FTX founder said he didn't want to rule out the possibility of an "enticing opportunity" in the mining industry:


"There could be a really tempting opportunity for us, and I certainly don't want to rule that possibility out."

However, the quote appears to have been taken out of context. Therefore, SBF felt compelled to clarify that the company was "not explicitly looking for mining companies" but "would be happy to have discussions" with them .

Bankman-Fried also stated in the interview that crypto miners don't fit into the company's core strategy and that he doesn't see any synergies from an acquisition:


"I don't see any particular reason why we should take on a crypto miner."

"From a strategic point of view, there are no particular synergies in an acquisition," he added.


Mining credits under pressure

Bankman-Fried was asked if he was looking into mining companies amid the declining crypto market, which has seen bitcoin mining revenues plummet.


At the same time, the Russian invasion of Ukraine has caused energy costs to skyrocket, which is having a significant impact on mining companies large and small.


Mining profitability, measured in dollars per terahashes per second, has reached a low not seen since October 2020 , according to Bitinfocharts . At press time, bitcoin mining profitability is $0.0956 per day for 1Th/s, down 80 percent from the 2021 peak of $0.464.


Bloomberg reported on June 24 that up to $4 billion in bitcoin mining loans have been issued, some of which have now spiraled into negative territory as bitcoin and mining equipment prices have fallen.


In this context:  No more large investments for the time being: Bitcoin miner Mawson is waiting for the crypto market to normalize


Last week, Cointelegraph reported that Bitcoin ( BTC ) mining revenue hit a yearly low not seen since mid-2021. Bitcoin mining revenue fell to $14.40 million on June 17.


Arcane Research data from June shows that declining mining profitability has forced large mining companies to liquidate their inventories. Several of these companies sold 100 percent of their BTC production in May, arguably to cover operating costs and loan repayments.

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