Whilst many crypto related businesses collapse amongst the detrimental exit of liquidity, there is some renewed optimism in the crypto market. Sam Bankman-Fried, or Sam Bankman-Fed as some may call him, has provided lifelines to crypto firms who are struggling to stay afloat. In a recent interview he said his firm FTX still have a “few billion” available to support struggling crypto firms that have the potential to destabilise the crypto market. In recent weeks, SBF’s firms Alameda Research and FTX have given Voyager Digital and BlockFi credit lines to protect client assets and prevent the situation impacting the rest of the crypto space. SBF said “We’re starting to get a few more companies reaching out to us. Those firms are generally not in dire situations, though some smaller crypto exchanges may still fail”, and that the industry has moved beyond “other big shoes that have to drop”. The billionaire entrepreneur also claimed that he thought the worst of the liquidity crisis has passed.
Bitcoin miners might be next on the chopping block though. As a result of market turmoil and energy costs increasing, crypto miner Core Scientific sold around $165 million worth of Bitcoin (CRYPTO: BTC) in June. The publicly listed firm sold 7,202 Bitcoin last month at an average price of $23,000, leaving it with just 1,959 Bitcoin.
In addition, Bitcoin miner Argo Blockchain sold 637 BTC at an average of $24,500 to pay for operating costs and a loan from Galaxy Digital. The firm also hired a full-time trader to improve its "capabilities within risk and treasury management."
They have been using derivatives to limit downside risk since fourth-quarter 2021. Crypto miners have been selling Bitcoin, due to their revenues slumping along with the bear market. Furthermore, CleanSpark sold nearly all 339 of the Bitcoin it mined in June. Oil prices have plummeted over the past few days though, which could be a sign of energy costs dropping for crypto miners.
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