Salerno Discusses State of Crypto Bankruptcies in Bloomberg Law Article
Stinson LLP Partner Thomas J. Salerno authored an article for Bloomberg Law, "As Crypto Bankruptcies Continue, Crypto Miners Strain Power Grids." The article analyzes the scope of cryptocurrency bankruptcy fallouts and the implications expected in a variety of adjacent industries.
Salerno estimates that 2022 brought in over $2 trillion in crypto losses, and he predicts the crypto marketplace has yet to feel the full effects. "As more investors analyze losses, businesses will find it more challenging to borrow money and acquire the goods they need to deliver end products—and will likely turn to bankruptcy as the only option," he writes. "The crypto crash will almost certainly have a ripple effect on financially troubled businesses, even those not heavily invested in crypto assets."
With demand still increasing for alternate crypto types, Salerno says it is inciting a frenzy of mining that stresses power grids and supply chains. "For businesses reliant on the tech industry, including automotive, health care, aviation, and others, this disruption in the semiconductor supply chain further exacerbates an already difficult dynamic," he writes.
Salerno brings global experience and out-of-the-box solutions to his work with complex commercial corporate restructurings, helping distressed, often high-profile companies find new paths forward. He is a frequent writer, lecturer and presenter, and is active in leadership in the American Bankruptcy Institute.
Read the full article.