By
Babafemi Adebajo
November 29th, 2023
Bitcoin mining giant Core Scientific has to sell more than 85% of its BTC holdings last month to repay other scheduled debts and cover operational costs.
The brutal correction in the crypto market has severely affected Bitcoin miners. On Tuesday, July 5, Bitcoin mining giant Core Scientific announced selling more than 7,202 Bitcoins during the last month of June 2022.
Core Scientific Selling Bitcoins
The company sold a majority of its Bitcoin pile at an average cost of $23,000 per Bitcoin raising more than $167 million. Core Scientific said that the money went mostly into covering operational costs. This includes equipment payments and scheduled repayment of debts. Furthermore, the company poured some money into fresh investments for expanding its data center capacities.
By the end of May 2022, Core Scientific had over 8,052 Bitcoins. Thus, with the recent sales, it holds less than 1,000 BTC in its kitty. Speaking of the development, Core Scientific CEO Mike Levitt said:
“We are working to strengthen our balance sheet and enhance liquidity to meet this challenging environment. Our industry is enduring tremendous stress as capital markets have weakened, interest rates are rising and the economy deals with historic inflation. Our company has successfully endured downturns in the past, and we are confident in our ability to navigate the current market turmoil.”
Working on Improving Balance Sheets
Mr. Levitt said that the company currently remains focused on improving its balance sheet. Furthermore, it seeks to enhance liquidity to overcome this challenging environment. He further said that Core Scientific will continue to operate “in excess of 30 EH/s in our data centers by year-end 2022”.
“We look forward to updating our shareholders in more detail during our regularly scheduled earnings conference call planned for August 11,” Mr. Levitt added.
Core Scientific is currently operating its Bitcoin mining data centers in Georgia, Kentucky, North Carolina and North Dakota. Besides, the company also has multiple operational facilities in Texas. As per the current plans, the company is willing to build up more facilities in Texas and Oklahoma in 2022.
By the end of June 2022, Core Scientific operates more than 180,000 ASIC servers. This constitutes 17.9 EH/s of hash power. In June 2022, Core Scientific generated 1,106 self-mined bitcoins. This was down 2.8% over the previous month.
Core Scientific is not the only Bitcoin mining giant to have sold its huge pile of BTC. Last month, Bitfarms also sold 300 BTC in the open market, in order to repay its loan to Galaxy Digital.