American cryptocurrency mining company, Core Scientific sold more than 7,000 Bitcoin in June to pay for services, increase its data capacity and pay off debt.
In a statement on Tuesday, Core Scientific said that it had sold approximately $167 million worth of Bitcoin (BTC) in June at an average price of $23,000 – 7,202 BTC. The sale left the company with 1,959 BTC – roughly 21% of its holdings – and $132 million in cash as of June 30, a drop of more than 75% compared to its declared holdings of 8,058 BTC as of May 31.
According to the company, it used the proceeds from the cryptocurrency sale to pay for ASIC servers, schedule debt repayment, and invest in additional data center capacity. The company reported that it had produced 1,106 BTC in June, with self-mining accounting for 57% of its data center capacity and cryptocurrency mining operations as of June 30: more than 180,000 servers.
“Our industry is under tremendous stress as capital markets have weakened, interest rates are rising and the economy grapples with historic inflation,” CEO Mike Levitt said. “Our company has successfully weathered recessions in the past, and we are confident in our ability to weather the current 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
Amid the market crash and extreme cryptocurrency price volatility, many cryptocurrency miners reportedly sold their mined coins and, in some cases, liquidated their holdings. In June, Canadian cryptocurrency mining firm Bitfarms sold 3,000 BTC — roughly 47% of its holdings at the time — for $62 million as part of a strategy to improve liquidity and pay down debt.
Levitt said that Core Scientific aimed to expand its capacity to 30 exahas/second by the end of 2022, while “he took advantage of the hard-pressed opportunities that might arise.” The company is scheduled to publish its earnings report for the second quarter of 2022 on August 11.
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