Hut 8 CEO: A significant amount of mining company mergers and acquisitions will only occur after BTC withdraws to $30000 to $40000
2024-04-03 05:56:25
Hut 8 CEO Asher Gennot stated that the number of bankruptcies of BTC mining companies in the coming years will be much less than in 2022. The bankruptcy in 2022 is mainly due to the company's excessive leverage and inability to cope with rising energy costs. However, Genoot stated that since then, BTC mining companies have typically relied on less leverage and more debt free capital from the equity market to develop their businesses. He expects to see an increase in merger and acquisition activities among smaller BTC mining companies, which may lead to a significant decrease in bankruptcy rates. Genoot explained that Bitcoin may need to retreat to $30000 or $40000 in order to see a significant amount of M&A activity or "distressed opportunities".
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