Monat: Januar 2023

El Salvador Pays Off $800M Bond Debt, Refutes Media Predictions

• El Salvador’s President Nayib Bukele has criticized „legacy international news outlets“ for their unfair coverage of the country’s repayment of its $800 million bond debt.
• Bukele said that these media outlets had previously predicted El Salvador would default on its debt but failed to report when it was paid in full.
• Bukele called out the legacy media outlets for their lies and said they often go silent when their lies are exposed.

El Salvador’s President Nayib Bukele has recently criticized „legacy international news outlets“ for their unfair coverage of the country’s repayment of its $800 million bond debt. Bukele said that these media outlets had extensively predicted that the South American country would default on its debts because of its „Bitcoin bet“, and wrote that it might have to strike a deal with the International Monetary Fund to make its bond payments due to its Bitcoin losses. He noted that despite El Salvador making the full $800 million payment with interests as and when due, almost no one was covering the story.

Bukele accused the legacy media outlets of lying and said that they often go silent when their lies are exposed. He argued that the lack of coverage was unfair and said that the media should have been talking about the success of El Salvador’s bond debt repayment, rather than its potential failure.

The repayment of the bond debt is coming on the heels of an approval to sell BTC-backed bonds worth $1 billion. El Salvador plans to use the funds from these bonds to purchase more BTC and build a „Bitcoin City“. The country has also recently become the first nation to make Bitcoin legal tender, which was hailed as a major victory for cryptocurrency adoption.

Despite the media’s silence, El Salvador’s success with its bond debt repayment is a milestone in the world of finance. The country has shown that it is capable of meeting its financial obligations, even in the face of economic uncertainty. This is a testament to the country’s commitment to financial responsibility and stability, and should be applauded by the international community.

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BlockFi Collapses Under Crypto Mining Woes, Plans to Sell $160M in BTC Loans

-Crypto lender BlockFi has filed for bankruptcy and is planning to sell $160 million of Bitcoin (BTC) miner-backed loans.
-The loans are collateralized by approximately 68,000 BTC mining machines.
-The price of BTC miners fell by around 85% over the past year due to the fall in BTC price in 2022 and the rising cost of power.

Crypto lender BlockFi has recently filed for bankruptcy, and is now planning to sell $160 million of Bitcoin (BTC) miner-backed loans. These loans are collateralized by approximately 68,000 BTC mining machines which have seen their value decline drastically in the past year. In fact, the price of BTC miners fell by around 85%, as the fall in BTC price in 2022 and the rising cost of power have severely impacted the demand for these machines.

The collapse of FTX, one of the biggest players in the crypto mining sector, has further amplified the woes of BlockFi, which has been providing loans to miners in the past year. This has resulted in some loans defaulting and some becoming under-collateralized. Consequently, in order to recoup its losses, BlockFi is now looking to sell these miner-backed loans, which is worth around $160 million.

Another major player in the mining sector, Core Scientific, has also filed for Chapter 11 bankruptcy in December 2022, while Argo Blockchain sold its Texas mining facility to Galaxy Digital for $65 million — securing a $35 million loan from the firm in late December 2022.

With miners unable to pay off their loans, and with the crypto market still volatile and uncertain, it remains to be seen how BlockFi will manage to recover from this crisis. It is likely that the lender will have to restructure its loans to reflect the current market price of BTC miners. However, as the crypto market continues to mature, it is expected that more players will enter the market and help create a more stable and viable industry.

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