Core Scientific sells over 7k Bitcoin to raise $167M

The fund sold to keep up with business costs and operations.
Core Scientific sells over 7k Bitcoin to raise $167M

Crypto mining firm Core Scientific sold over 7,000 Bitcoin in June via the open market to bring its holdings down to about 70% over the previous month.

The US-based company said in a public statement on Tuesday that it had roughly raised around $167 million after selling 7,202 BTC at an average price of $23,000. The firm was left with 1,959 BTC and $132 million in cash as of Jun 30 – a drop from 8,058 BTC holdings compared to its 31st May filings.

Core Scientific mainly used the proceeds from the sale for ASCI server maintenance, debt repayments, and investments in additional data-center capacity. The company hopes to continue selling BTC gained through mining operations to further fund operations, maintain liquidity, and reduce debts.

CEO Mike Levitt said in a statement:

“Our industry is enduring tremendous stress as capital markets have weakened, interest rates are rising and the economy deals with historic inflation.”

He added:

“We are working to strengthen our balance sheet and enhance liquidity to meet this challenging environment, and continue to believe that we will be operating in excess of 30 EH/s in our data centers by year-end 2022.”

The firm was able to generate 1,106 Bitcoin in June – roughly 37 Bitcoin a day – exceeding the May outputs by a slight margin. Additional server deployments in June helped it achieve a higher daily output of approximately 14%.

Self-mining and crypto mining activities account for 57% of its current data-center capacity of more than 180,000 servers – as of Jun 30. The company is expected to release its earnings for the second quarter on Aug 11.

The current market crash has forced several mining firms to liquidate holdings to fund operations. Bitfarms, a Canadian crypto mining firm in June sold 3000 BTC, roughly 47% of its holdings, for $62 million to fulfill working capital requirements.

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James Satoshi
James Satoshi
James is a leader in Web3, NFTs, & DeFi with over 4 years of experience in the industry. You'll spot him covering all topics through-out Coinmash in our guides and analysis sections.