Wave of layoffs hits another Bitcoin mining company

Key facts:
  • A net loss of more than $860 million would be linked to the decision.

  • According to Core Scientific, payroll and operating expenses increased.

Core Scientific, a Bitcoin mining company, announced that it cut 10% of its workforce. Net loss of $860 million in profit, increased operating expenses, and a bitcoin bear market that has been going on for months are related to this decision by the company.

In a conference call yesterday, Core Scientific’s chief commercial officer, Denise Sterling, said that downsizing was “surgical” and does not affect operating staff of Bitcoin mining farms.

The move is related to a financial performance report released last Thursday. According to the report, the company suffered a net loss of USD 861.7 million. This is due to an “impairment” of goodwill equivalent to $840 million, a $150.2 million decrease in savings in “digital assets” and operating expenses of $106.9 million; all “compensated for the value of the convertible notes” of the company.

In describing the increase in operating expenses, Core Scientific says:

The increase in operating expenses was further driven by $4.6 million of higher professional fees, primarily related to investments made to support the readiness of public companies, and $3.4 million of higher payroll costs and benefits. for staff.

Core Scientific, Bitcoin mining company

According to the report, the Bitcoin mining company will not reduce the capacity of computing power or hashrate that it contributes to the Bitcoin network, which is equivalent to 10% of the total. In fact, with the sale of more than 7,000 BTC in June and almost 2,000 BTC in July, they ensure the payment of debt, the acquisition of new equipment and the conditioning of their infrastructure.

As we reported in CriptoNoticias, during the past month, this mining company incorporated 14,000 new equipment to mine Bitcoin in the midst of a bear market. In total, Core Scientific has 195,000 operating teams that provide a hashrate of 20 EH/s, with a projection at the end of the year of more than 30 EH/s.

During yesterday’s conference call, Mike Levitt, CEO of Core Scientific, commented that they expect two-thirds of the company’s growth occurs during the second half of the year.

He also estimated that operating staff and facility costs increased 25% compared to last year.

Regarding the cost of electricity, Levitt indicated that its value reached USD 0.055 kW/h. In this sense, the manager spoke about future commercial agreements to mine Bitcoin that reduce the company’s exposure to possible increases in the price of natural gas.

Is It has not been the only Bitcoin mining company that has seen the need to reduce its staff during the bear market. At the end of June, Compass Mining cut 15% of its staff when it exposed a $1.2 million debt that meant they also lost a facility.

See also  This is the technology that searches for private micropayments in Bitcoin

Leave a Comment

Your email address will not be published.