Riot Blockchain Inc. RIOT told Benzinga on Monday that although the company has no direct exposure to the insolvent cryptocurrency exchange FTX, the increased volatility in the market as a result of FTX's insolvency has an influence on Riot's Bitcoin BTC/USD mining economics.
“At a high-level, we believe bear markets are the ideal time to build and therefore are continuing our 400 MW build at our new 1 GW site in Corsicana, TX,” Riot CEO Jason Les told Beniznga. “This expansion and our overall position in the market is supported by Riot’s strong balance sheet, which we recently reported as comprising of approximately $255 million in cash at Q3 end, approximately 6,800 BTC, and no long-term debt.”
Many crypto companies are coming forward in light of FTX’s failure to announce their exposure to the failed company.
Marathon Digital Holdings Inc MARA CEO Fred Thiel told Benzinga last week that FTX’s failure stoked greater fear in what is already an uncertain market.
"I think anytime a large player in the industry is negatively impacted, it creates fear. So from an opportunity perspective, you know, essentially, FTX was the largest competitor of Binance. Now, that's gone," Thiel said.
The CEO also cleared the air, telling Benzinga that Marathon Digital has zero exposure to FTX.
Thiel said that FTX’s fold will create opportunities for rival exchanges, such as Kraken, Gemini, and Coinbase Global Inc COIN to snap up the millions of customers who used FTX.
Read next: Huobi Loses User Money In FTX Bankruptcy: Why Were Millions On Another Exchange?
Photo: Courtesy of Marco Verch Professional on flickr
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month