- Ki Young Ju asked large TradFi to rescue US-based BTC mining companies.
- US mining firms now operate at maximum capacity in a bid to pay debts.
- FoundryUSA now controls a 42% hash rate, the highest dominance since 2014.
Ki Young Ju, the CEO of data analytic firm CryptoQuant is calling on wealthy investors to undertake a rescue mission of buying out US-based Bitcoin (BTC) mining companies and their crypto holdings at a discount this year.
In a Twitter thread today, Young Ju argued that US miners are running mining rigs at their maximum capacity to repay the financing debt owed on equipment they were leasing. The CEO shared a chart illustrating that mining firm FoundryUSA took 42% of the entire hash rate over the last 24 hours. He added that the figure represented the most extensive dominance since 2014.
Furthermore, Young Ju expressed that some mining companies that have used the FoundryUSA pool have filed for Chapter 11 bankruptcy or reported significant losses for the past few months.
Additionally, CryptoQuant’s CEO hinted that the return on investment for BTC mining is not exceptionally high, given that the Bitcoin hash price renewed a four-year low a few days ago.
In Young Ju’s words:
When small and mid-sized miners go underwater, they capitulate by selling all Bitcoins and mining rigs. But US miners now are institutional miners. If someone buys the whole mining company with a discount, it won’t directly affect selling pressure to the markets.
While the CEO of CryptoQuant calls on tech giants to bail out US miners, some people believe that such may not materialize as large TradFi firms often look at old-school metrics like cash flow, equity, and debt rati