Publicly traded Bitcoin miner Core Scientific experienced another net loss on its Bitcoin holdings last month.
The firm sold 1,975 coins at an average price of $22,000 per Bitcoin in July, netting it proceeds of $44 million, according to a company announcement on Friday. Meanwhile, only 1,221 coins were mined.
This left just 1,205 Bitcoin and $83 million in cash on Core Scientific’s balance sheet as of July 31st.
“Proceeds from bitcoin sales in July were primarily used to pay for capital investments related to increasing data center capacity,” the company explained. It also paid down debt to mining server manufacturer Bitmain for a 2021 order of 100,000 ASIC servers – the specialized machines used to competitively mine Bitcoin.
Less than $10 million in ASIC-related payments remain outstanding.
Crypto Miner Core Scientific Dumps $165M Bitcoin to 'Enhance Liquidity'
Crypto miner Core Scientific sold roughly $165 million worth of Bitcoin last month, as inflation and market turmoil piled on the pressure for public crypto companies. The NASDAQ-listed firm sold 7,202 Bitcoin during June at an average price of $23,000, leaving it with just 1,959 Bitcoin, bosses told investors yesterday. As of June 30, the company had $132 million in cash on its balance sheet. The proceeds will go towards covering the cost of servers, increasing data capacity, and paying off deb...
Though the selloff has pulled Core Scientific’s total Bitcoin holdings even lower, it marks a relatively minor hit compared to the month prior. The firm sold a whopping 7,202 coins in June worth $165 million to “enhance liquidity,” as Bitcoin’s price crashed well below $30,000. Meanwhile, it only produced 1,106 coins.
The bear market has prompted many crypto mining companies to liquidate their Bitcoin holdings.
Core Scientific has also continued to scale operations. The company deployed another 14,000 ASIC servers in July, increasing its hash rate capacity to 19.3 exahashes per second (EH/s) – the largest capacity of any listed North American company. That equals 19.3 quintillion hashes per second, representing about one-tenth of Bitcoin’s total hash rate, according to Blockchain.com data.
About 44% of the firm’s total hash rate was generated through colocation services, through which customers rent ASICs in Core Scientific’s data centers. The company signed colocation agreements with customers in July that are expected to generate $50 million in annual revenue.
Bitcoin Miner Riot Earned $9.5M for Shutting Down During Texas Heatwave
Riot blockchain paused mining operations at its Texas facility last month upon request from the state—and was handsomely rewarded. The industrial crypto miner, according to a company statement on Wednesday, earned roughly $9.5 million in power credits for its curtailment activity—roughly 439 Bitcoin, based on the average July price of $21,634. The reward more than compensates for Riot’s underwhelming production of 318 Bitcoin last month, down 28% from the 443 mined in July 2021. The payout comes...
Core Scientific was one of the industrial-scale miners that paused operations in Texas to protect the grid during an overwhelming heatwave early last month. The firm curtailed 8,157 megawatt-hours on its own.
Some firms like Riot blockchain were financially compensated for their curtailment action as part of Texas’s demand response program available to Bitcoin miners. It earned $9.5 million – worth more than all of the Bitcoin it had self-mined in July. Core Scientific made no mention of receiving similar compensation.
