Core Scientific, a cryptocurrency mining company based in the United States, sold more than 7 000 Bitcoin to pay for servers, expand its data capacity, and settle other debts.
Core Scientific announced Tuesday that it had sold approximately $167 million worth Bitcoin (BTC). The average price was $23,000, or 7,202 BTC. Core Scientific left with 1,959 Bitcoin (roughly 21% of its holdings) and $132 Million in cash as of June 30. This is more than 75% less than its reported 8,058 BTC holdings of May 31.
According to the company, proceeds from the sale were used to buy ASIC servers, pay off debt and invest in more data center capacity. According to the company, it produced 1,106 BTC in June. Self-mining accounts for 57% of its data centre capacity and crypto mining operations account for more than 180,000 servers as of June 30.
CEO Mike Levitt stated that “our industry is experiencing tremendous stress because capital markets are weakening, interest rates rise and the economy deals avec historic inflation.” “Our company has been through downturns before and we have confidence in our ability to navigate this market turmoil.”
JUNE 2022 HIGHLIGHTS: -1,106 #Bitcoin self-mined, -10.3 EH/s self-mined -+180,000 ASIC servers in operation -7.6 EH/s co-location (hosting) -Daily self-mining increased by 14% from June 1 (34.8) to June 30 (39.8)https://t.co/KeypwtMEfr
— Core Scientific (@Core_Scientific), July 5, 2022
Many crypto miners reported that they have sold their self-mined coins, and sometimes liquidated their holdings, amid market volatility and market downturns. Bitfarms, a Canadian crypto mining company, sold 3,000 Bitcoin — approximately 47% of its holdings at that time — for $62million as part of a strategy of improving liquidity and paying debts.
Related: Bitcoin miner Mawson will defer major capital expenditures until market conditions stabilize
Core Scientific CEO Levitt stated that the company aimed to increase its capacity to 30 exahashes/second before 2022 and “take advantage of any distressed opportunities that may occur.” Core Scientific will release its earnings report starting in Q2 2022.