In June, Core Scientific sold Bitcoin holdings totaling $167 million.
The sale reduced the company's reported 8,058 BTC holdings as of May 31 by more than 75%, leaving it with 1,959 BTC at the end of the second quarter.
Core Scientific, a cryptocurrency mining company based in the US, sold over 7,000 Bitcoin in June to pay for servers, expand its data storage, and pay off debts.
In a statement on Tuesday, Core Scientific stated that it had sold 7,202 Bitcoin (BTC) worth approximately $167 million in June at an average price of $23,000. The sale reduced the firm's reported 8,058 BTC holdings as of May 31 by more than 75%, leaving it with 1,959 BTC as of June 30—roughly 21% of its total holdings—and $132 million in cash.
The company claims that it purchased ASIC servers using the money from the cryptocurrency sale, set up debt repayment plans, and made investments in more data centre space. As of June 30, self-mining accounted for 57 percent of the business's data centre capacity and its crypto mining operations, or more than 180,000 servers. The company reported producing 1,105 BTC in June.
According to CEO Mike Levitt, "our business is under great stress as a result of weakening financial markets, rising interest rates, and the economy dealing with historic inflation." We've successfully weathered downturns in the past at our company, so we're confident in our capacity to get through the current market turbulence.
Numerous crypto miners are said to have sold their self-mined coins and, in some cases, liquidated holdings due to the market collapse and high price volatility in cryptocurrencies. As part of a plan to increase liquidity and settle debts, the Canadian cryptocurrency mining company Bitfarms sold 3,000 BTC in June for $62 million, representing around 47% of its total holdings at the time. By the end of 2022, Core Scientific plans to increase its capacity to 30 exahashes/second while "taking advantage of distressed possibilities that may occur," according to Levitt. On August 11, the firm intends to issue its Q2 2022 earnings report.
