Sam Bankman Fried considers acquiring troubled crypto mining companies next and said helping bail out these companies might mitigate the credit line contagion on the market so let’s read more today in our latest cryptocurrency news.
The CEO of FTX Sam Bankman Fried considers acquiring trouble crypto miners and helping them step contagion in the industry:
“When we think about the mining industry, they do play a little bit of role in the possible contagion spread, to the extent that there are miners that were collateralizing borrows with their mining rigs. There might come along a really compelling opportunity for us – I definitely don’t want to discount that possibility.”
To be sure, Bankman noted that he wasn’t looking particularly at miners but sure, he is happy to have a chat with companies after the publication of the story. Private and publicly listed miners are facing margin calls and defaults after racking up debts between $2 billion and $4 billion to finance the construction of the gargantuan facilities in North America. FTX announced that it had made a deal with lender Blockfi to provide it with a $400 million credit facility and to acquire it for $250 million.
Alameda Research owned by Bankman Fried also extended a cash/USDC loan of $200 million to crypto exchange Voyager digital. The shares of the publicly-traded mining companies are down by 75% or more today.
As recently reported, Sam Bankman-Fried purchased stakes in Robinhood according to a filing with the US SEC today. The news of the purchase sent the Robinhood shares soaring b over 30% in after-hours trading and the stock came back down a bit later to $10.72. as per the SEC filing, SBF bought over 56 million shares of Robinhood via a company called Emergent Fidelity Technologies and the stake is worth around $600 million. The investment came at a time when Robinhood’s fortunes and revenues declined and only hours before the purchase, the shares hit an all-time low of $7.71.
The stock dropped steadily after hitting after its IPO last July so since then, the company revenues were on a downswing as well.
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The company saw an 18% decline in revenue for Q1 2022 while three weeks ago, it laid off 9% of the workforce due to the global downturn in casual investment activity as the main reason for slowing growth.
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