Never underestimate how quickly things can deteriorate in a volatile sector like cryptocurrency, especially in a bear market. Prices can always drop in crypto winter departments and the drops can multiply overnight. 2022 has been a year of endless infections; with all focused on BinanceHigh Profile Bitcoin (BTC) the miners went bankrupt.
This week, the mining company Core Scientific filed for Chapter 11 bankruptcy. Greenridge, another miner, received a $74 million debt restructuring life line of the New York Digital Investment Group. Bitcoin is the most valuable commodity in a bear market, but miners need to keep the lights on.
Not all the news is negative on the mining front. This week, German miner Northern Data reported that it expects generate up to $206 million in revenue of its mining operations this year. He also has no financial debt on his books, which gives him more flexibility to deal with market conditions.
This week's Crypto Biz takes a look at Core Scientific's financial woes, FTX's recall warning, Celsius' pool of potential bidders, and Visa's latest intellectual foray into crypto.
Bitcoin Miner Core Scientific Reportedly Files for Chapter 11 Bankruptcy
Crypto contagion has spread to the Bitcoin mining industry, with Core Scientific miner reportedly filed for Chapter 11 bankruptcy in Texas. The news came a few days later a creditor offered Core Scientific $72 million to help shore up your finances in the midst of the bear market. That deal did not take place. However, Core is said to continue with its mining operations and has no plans to liquidate its remaining BTC. The company was forced to download 9,618 BTC in April to stay operational. Other Bitcoin miners are also feeling the pinch and are looking at various means to protect their operations during a prolonged bear market.
FTX warns that it will recover donations and political contributions
Just when you think you've heard all you need to know about Sam Bankman-Fried and FTX, new developments pop up. This week, the bankrupt crypto exchange warned that anyone receiving political donations or contributions from SBF or other FTX executives Could you get those funds back? as part of a fund recovery process. this may have been triggered by some Democratic recipients coming forward and pledging to return the now tainted funds. Do you know who else received campaign donations from SBF? Biden's 2020 election campaign. So far, the president has not signaled if he would return the 5.2 million dollars value of donations SBF made to his campaign during the 2020 presidential election, but that could change. This is a story worth following.
Sharing Our Just Issued Press Release: FTX Debtors Announce Process For Voluntary Return Of Avoidable Payments https://t.co/l57F7zgKPJ
-FTX (@FTX_Official) December 19, 2022
Celsius accumulates 30 possible bidders for its assets, the withdrawal motion is approved
Bankrupt crypto lender Celsius has amassed a long list of potential buyers for its remaining assets, raising cautious optimism that it would be able to sell your retail rig and mining business at a competitive price. Since September, more than 125 parties have been contacted and 30 potential bidders have emerged. Celsius' latest filing, part of its bankruptcy proceedings, suggested the company's valuation was $2.6 billion as of November 25. a $1.2 billion hole on your balance sheet. In other words, there is $5.5 billion owed to users versus only $4.3 billion in assets.
Visa Dreams Plans To Let You Pay Bills Automatically From Your Crypto Wallet
Despite all the fear, uncertainty, and doubt plaguing the cryptocurrency market, we can always rely on Visa for positive reinforcement. The Giant of Cryptocurrency-Compatible Credit Cards Recently proposed a business solution to streamline payments for digital assets. While still in the thought experiment phase, Visa envisions an automatic payment feature that allows cryptocurrency users to draw funds directly from their Ethereum-powered self-custody wallets. They can then use these funds to make automatic payments on their phone bills, Netflix subscriptions, and other recurring charges. It's a highly technical proposition, but we dissected it in layman's terms to give you the full scoop.
Before you go: Is Binance insolvent or is it just FUD?
How far will the crypto contagion spread? As centralized platforms fall by the wayside, culminating in the collapse of FTX in November, more and more people are turning their attention to Binance. Secured or not, Binance has been at the center of controversy over concerns about its financial health and rumors that the exchange would become the target of a lawsuit for money laundering in the United States. In this week's Market Report, I sat down with Marcel Pechman and Joe Hall to discuss any merits to Binance FUD. You can watch the full replay below.
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