Cryptocurrency miner Core Scientific offloads $167m Bitcoin

Nasdaq-listed firm dumps crypto to cope with ‘historic inflation’

Close up of a series of crypto mining ASIC rigs                                 
Core Scientific has revealed it sold 7,202 Bitcoins last month – Photo: Shutterstock
                                

Core Scientific traded down after Wednesday’s opening bell, after the cryptocurrency miner had announced it offloaded $167m (£140m) worth of Bitcoin last month in response to challenging market conditions.

The company said it sold 7,202 Bitcoins at an average price of around $23,000 a Bitcoin. As of 30 June, it only had 1,959 Bitcoins left on its balance sheet.

The Nasdaq-listed firm said that the proceeds from the sales were primarily used for “ASIC servers, capital investments in additional data centre capacity and scheduled repayment of debt.” It vowed to continue to sell self-mined Bitcoins to fund operating expenses, fund growth, maintain liquidity and retire debt.

CEO stresses confidence in firm's ability to navigate recent turmoil

Mike Levitt, Core Scientific’s CEO, stated: “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.”

Levitt pledged to remain focused on executing the company’s plan and to take advantage of any distressed opportunities that may arise amid the ongoing crypto winter. 

By 10:30 EST, Core Scientific’s stock traded down by 5% at $1.62, having sunk by 84% since the start of the year. 

Core Scientific is by no means alone among the world’s prominent listed cryptocurrency mining firms. Indeed, since the start of the year, Marathon Digital, Riot Blockchain and Argo Blockchain have seen their stock prices slump by 82%, 80% and 60%, respectively.

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