The North American-based Bitcoin mining company sold $167 million worth of BTC in June, far more than it produced.
- Core Scientific sold $167 million worth of Bitcoin in June.
- The firm sold 6 times more BTC than it mined and plans to continue selling.
- Other miners are also liquidating their Bitcoin holdings amid the price drop.
Core Scientifica major US-listed cryptocurrency mining company, is selling far more than the bitcoin it produces to reduce its debt and keep its operations going.
In a Press release this Tuesday, the company reported that during the month of June it sold 7,202 bitcoin at an average price of USD $23,000 per coin, which allowed him to raise close to USD $167 million. Core Scientific It said the proceeds from the sales were mainly used for ASIC server payments, data center investments and debt payments.
The figure is significantly higher than the number of bitcoin that produces monthly Core Scientific. According to its report today, the miner extracted 1,106 bitcoin in June, averaging 36.9 BTC per day, which was an increase from May. Production, which was helped by server deployments, increased about 14% in June.
The recent sale reduced the reserves of Bitcoin from the company to a total of 1,959 BTC, according to the statement. Core Scientific it also maintains approximately $132 million in cash on its balance sheet.
Core Scientific sell more Bitcoin than you mine
Despite being liquidating more Bitcoin of the one who produces, Core Scientific He announced that he plans to continue sales in order to pay operating expenses, pay off debt and maintain liquidity. CEO Mike Levitt mentioned the current price decline in the cryptocurrency market, as well as broader macroeconomic factors.
“Our industry is under tremendous stress as capital markets have weakened, interest rates are rising, and the economy faces record inflation. Our company has successfully weathered recessions in the past and we are confident in our ability to navigate the current market downturn.”.
We are working to strengthen our balance sheet and improve liquidity to face this challenging environment, and we continue to believe that we will be operating at more than 30 EH/s in our data centers by the end of 2022.
Core Scientific there was already restructured its growth outlook in May to take on a more “conservative“ in the face of market volatility. After announcing a decline in its earnings for the first quarter of 2022, the company said it was lowering its hash rate guidance to 30-32 exahash per second (EH/s) from its previous outlook of 40-42 EH/s. , What reported at that moment CoinDesk.
To meet these goals, the company reported in its statement today that it plans to deploy approximately 70,000 additional auto-mining ASIC servers over the next six months. At the end of the month, Core Scientific it had an output of 10.3 EH/s. It is one of the largest in terms of hashes among crypto mining firms listed on the American stock exchange.
Miners liquidate their BTC reserves
The report confirms the liquidity trend among miners in Bitcoin, who are looking to keep their trades afloat as the flagship cryptocurrency retreats to price levels not seen since 2020.
Bitcoin it has been trading lower for much of 2022. After hitting an all-time high near $70,000 in November, the coin has dropped over 60% to trade even below $20,000. At the time of editing, Bitcoin It changes hands at around US$19,500.
Discount prices put stress on cryptocurrency miners, who face difficulties in covering production costs due to poor profitability due to a low block reward. Bitfarmsa major Canadian miner, announced two weeks ago that it had sold 3,000 bitcoin to reduce your debt and increase your liquidity.
It’s not the only one; according to data from Arcane Research publicly traded miners have been selling more Bitcoin than they produce during the first months of the year. These sell-offs have in turn put pressure on markets, driving prices even lower, analysts say.
Article by Hannah Estefanía Pérez / DailyBitcoin
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