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By Gates Guarin

Local cryptocurrency mining facility unaffected by bankruptcy of major crypto exchange

Nov 15, 2022 | 8:39 AM

MEDICINE HAT, AB – A prominent cryptocurrency firm filed for bankruptcy over the weekend. Trading firm FTX, formerly one of the world’s largest exchanges, filed for bankruptcy protection on Friday, causing the price for bitcoin and other digital currencies to fall. Several big backers, like the NBA’s Miami Heat and Mercedes, have terminated their relationships with the firm amid the fallout.

A representative from Hut 8, a bitcoin mining company with a significant mining presence just on the outskirts of the city, says while the mining and exchanges are connected, the bankruptcy won’t affect operations.

“It’s business as usual for us,” says Sue Ennis, vice-president of corporate development.

“This isn’t a situation where the technology itself has failed; Bitcoin has continued to produce block after block. 200 million people have continued to transact using the Bitcoin network. With respect to FTX, this is a tale as old as time of humans creating platforms that perhaps were not transparent and again, just another real example of why there is a need for greater regulation in this space.”

Hatters invested in the mining facility should not see any concerning changes due to Hut 8’s involvement on the technology side.

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“Our balance sheet is incredibly strong, we’re incredibly bullish on our relationships and on the province in and of itself, and we don’t see any particular headwinds coming as it stands right now,” says Ennis.

Ennis is calling for more regulation in the crypto market, saying more rules will provide a more transparent picture for investors and companies looking for more confidence in an already volatile market.

“More regulation in the spirit of innovation means we can all continue to build and create and really continue to establish Canada as a leader in the cryptocurrency space.”