The CEO of Bitcoin (ENCRYPTION: BTC) mining company Marathon Digital Holdings Inc. (NASDAQ: MARA), the world’s second-largest Bitcoin holder among publicly traded companies, speaks out on the impact of the FTX fiasco.
In an exclusive interview with Benzinga, Fred Thiel was asked if the bankruptcy of FTX could create opportunities in the crypto industry. “If anything has increased the fear factor among investors in the industry who are, you know, now very concerned about crypto holdings. So that will cool the interest in holding crypto a bit,” he replied.
“I think any time a big player in the industry is negatively impacted, it creates fear. So from an opportunity perspective, you know, basically FTX was Binance’s biggest competitor. Now it’s on,” noted Thiel.
The CEO of Marathon Digital acknowledged that some exchanges could be positively impacted by the fallout from the FTX bankruptcy. “If anything, [it] can create opportunities for Coinbase Global Inc. (NASDAQ: PIECE OF MONEY), Kraken and Gemini to increase US institutional trading volume, as US investors will not necessarily want to take the risk of trading on Binance,” he added.
Last week Marathon Digital reported its third quarter results. During the announcement, Thiel said the company added 616 BTC to its holdings during the quarter, with an additional 615 BTC purchased in October alone. The company currently holds 11,300 Bitcoins worth around $205 million.
Thiel said the company holds a significant number of bitcoins on its balance sheet and has no significant debt.
“We hold a lot of bitcoin on our balance sheet which obviously has a negative impact on our balance sheet. The good thing is we don’t have a lot of debt so we don’t have equipment that has been funded,” Thiel said. .
Speaking about the crypto market and Bitcoin’s performance, he said, “We’re mining bitcoin, and we haven’t been selling bitcoin. It’s painful to see the price of bitcoin go down. We’ve been through these winters before. The good thing is that you clean up and create a truthful surrender.”
Asked about the price of Bitcoin and whether it is profitable to mine, Thiel said, “It depends a lot on each miner’s situation. You know, both Bermuda and Luxor have released data that shows their estimates for each miner and their breakpoint. refer you to these documents. For example, Core Scientific is not profitable in its bitcoin mining. This is one of the reasons they are in their liquidity frenzy. Other actors like Argo could also have problems, ”said Thiel.
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