Some believe miners dumping their crypto is a standard aspect of bitcoin’s market cycle. Core Scientific said it sold 7,202 BTC for about $167 million in June, and proceeds were used for ASIC servers, data center capacity and debt payments.Īt the end of last month, Core Scientific held 1,959 BTC ($45.6 million) and about $132 million in cash on its balance sheet.
The company does however boast strong cash flow thanks to its commanding hash rate, historically more than any other public mining stock - funds it needs to pay off machine deliveries throughout the year.Ī growing number of cryptocurrency miners have recently been forced to sell a substantial portion of the BTC they’ve mined. During the bull market, many bitcoin miners took on high-interest loans to fund their rapid expansions, which included deals to acquire large inventories of ASIC miners.Ĭore Scientific in particular maintains high levels of machine-collateralized debt compared to its peers, Arcane Research reported last month. The Austin-based firm’s equity financing comes amid a broad market downturn that has weighed on miners’ balance sheets. Core Scientific stock currently trades for $1.87.Īccording to an SEC filing, the miner will use proceeds from its common stock sale for “general corporate purposes.” “Securing access to additional capital during adverse market conditions enhances our liquidity and expands our strategic optionality,” Mike Levitt, Core Scientific’s CEO, said in a statement. To satisfy the agreement, Core Scientific issued the firm 573,381 shares of common stock for its commitment to the equity financing facility. Riley, subject to limitations and conditions such as the market environment and trading price of the stock. Riley Principal Capital.Ī Thursday statement shows the miner has the right, but no obligation, to sell and issue its shares to B. Major bitcoin mining outfit Core Scientific is raising capital by agreeing to sell $100 million in equity over the next two years to investment firm B. The miner sold 7,202 bitcoin for roughly $167 million in June.Core Scientific signed an agreement to sell $100 million shares to investment firm B.
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