Today the latest on Sam Bateman Freed's Criminal case crypto Mining Company core Scientific files for bankruptcy and Permit Park of transform discusses new Ways to cut down on crypto's energy use [Music] Welcome to cnbc's crypto world I'm Tanaya McKeel crypto prices in the red Today reversing course from yesterday as Of noon Eastern Bitcoin stayed below the Seventeen thousand dollar level ether Traded around twelve hundred dollars and Solana dropped to about 12 bucks Let's talk about the top stories first Sam bankman freed was in court in the Bahamas again today arriving the morning After signing legal papers Paving the Way for his extradition to the U.S Citing the Bahamas acting Commissioner Of Corrections Reuters reported that SBF Signed the documents around noon Yesterday today's proceeding is expected To set the stage for sbf's departure From the Bahamas after a couple of Confusing days in court over the status Of his extradition his U.S attorneys Declined to comment to CNBC the former Billionaire was indicted last week and Now faces federal fraud charges as well As civil suits from the SEC and cftc SBF Has publicly acknowledged risk Management failures at the crypto Exchange he founded but said he does not Believe he has criminal liability as of
New Eastern bankmanfried was still in The Bahamas but of course we will keep You updated on the latest developments In tomorrow's show next the creditors of Genesis and its parent company digital Currency group or dcg have a proposal to Resolve liquidity issues that's According to Gemini co-founder Cameron Winklevoss who tweeted that a creditor Committee which includes his crypto Exchange presented a plan to quote Provide a path for the recovery of Assets he added that the plan is based On information received from Genesis dcg And their respective advisors to date The committee expects an initial Response this week in February of last Year Gemini partnered with Genesis to Create a lending platform that allowed Users to lend out their crypto in Exchange for interest payments of up to Around seven percent last month Genesis Suspended withdrawals amid the market Turmoil following ftx's collapse the Financial times reported earlier this Month at Genesis and dcgo Gemini Customers 900 million dollars and Finally one of the largest publicly Traded crypto mining companies in the U.S filed for bankruptcy protection this Morning a person familiar with course Scientific finances told CNBC core Scientific Minds for proof-of-work Cryptocurrencies like Bitcoin and the
Process involves powering data centers Across the country requiring expensive Equipment and a lot of electricity a Person familiar with the situation says The company still generates positive Cash flow but that's not enough to repay The financing debt owed on equipment It's leasing of course scientific plans To continue mining while repaying debt Holders the stock is down 98 percent This year as the rising cost of energy And plunging crypto prices have Challenged the mining industry All right on to our main story and Sticking with mining crypto world's Talia Kaplan spoke with permit Parikh The co-founder of transform accompanying Tailoring power devices to crypto mining Applications he discussed Energy Efficiency in his company's Contributions to the complex crypto Mining industry take a listen So your company provides gallium nitride Devices for crypto mining systems can You talk about how this works and what Do you say are the benefits associated With using gallium nitride especially From an energy usage standpoint Yes to transform trading at sticker Symbol tgan on the NASDAQ is the Pioneer And leading manufacturer of gallium Nitride power semiconductors a Disruptive Next Generation semiconductor Technology that is completely changing
The game of how energy efficient power Conversion is done from adapters and Fast Chargers powering your laptops to Data server power to Computing to Blockchain and crypto mining the focus Of our talk here to renewable energy and Electric vehicles no matter all of this Application gallium nitride and Transform is saving energy in every Power conversion and the way we do it With our proprietary gallium nitride Architecture is by the gallium nitride Operating at much faster 5 times 10 Times faster than traditional silicon Semiconductors and in doing so doing With extremely low loss or wasted Electrical energy as heat This in turns enables the complex crypto Mining or any any cryptocurrency mining Bitcoin mining power rates to run very Efficiently 24 7. so what are some of The biggest mining power challenges in Your view It's a very computationally intensive Process And the weird thing about mining is the More number of users are mining the more Electrical energy and more power is Required to mine and this computer is a Servers Behind These rigs behind the Scenes are on 24 7. so not only they are Using electricity 24 7 and by the way The electricity consumed by mining even Today is bigger than some entire
Countries like Argentina or Sweden and It can reach one percent of the total World energy consumption in the future So from a broader Outlook what is your Vision for 2023 as it pertains to Bitcoin mining and crypto mining Yeah so we hope to increase our Shipments our role in crypto mining is To make it more energy efficient so as Crypto Mining and any other power Conversion application become more Energy hungry we hope to increase our Number of customers worldwide and Increase the penetration in blockchain Computing and crypto mining because one Percent Energy savings one percent can Mean 250 kilowatt hours for one just one Crypto mining rig just in 2022 We Believe We enabled say 50 000 metric Tons of carbon dioxide emission which Transform energy efficient gallium Nitride and we hope to significantly Improve on that enabling our customers And enabling the world to save Electrical energy in crypto Mining and Other power conversion applications So for the past few months Bitcoin Miners have been dealing with Rising Electricity costs in the lower price of Bitcoin and recent data for Miningpoolbdc.com shows that the Difficulty of mining a Bitcoin block Dropped by more than seven percent with Minors turning off machines as the bear
Market hits profit now according to the Data the adjustment at block height of Around 766 000 is the biggest downward change since July 2021. what is your reaction to this So one of the key things about transform Is first of all we are well Diversified Into a variety of power applications Right so similar kind of power supplies Go everywhere else the other part of the Equation is as Bitcoin mining as you Said the price decreases as it becomes More challenging the value of Energy Efficiency becomes even more important Right think about it electricity is one Of the bigger costs in in Bitcoin mining In crypto Mining and as the at the end Of the day as the price increases what You can save in that power supply in That mining rig gets even more important As the price becomes challenging Now one last thing the head of India's Central Bank warned yesterday that the Next financial crisis will be caused by Private cryptocurrencies if the assets Are allowed to grow shaktikanta Das said His main concern is that crypto lacks Any underlying value he called Cryptocurrencies speculative and argued That they should be banned Cryptocurrencies have certain huge Inherent risks For our microeconomic and financial Stability
And we have been pointing it out and the Developments over the last one year Including the latest episode of the Built around this FTX I think after all these I don't think we Need to say anything more about our Stand I think the time has only time has Proved that cryptocurrencies are worth What they are today his comments come as The Central Bank pursues its own digital Version of the Indian rupee okay that's All for crypto world today but we'll be Back again tomorrow so we'll see you Then [Music]
