Core Scientific sold the majority of its Bitcoin holdings in June, according to a monthly update released on Tuesday. It exchanged 7,202 Bitcoins for approximately $167 million and now has 1,959 Bitcoins and $132 million in cash on its balance sheet.
According to Core Scientific, the proceeds from its Bitcoin sales will be used to pay for ASIC servers, which are commonly used to mine cryptocurrency; investments in data center capacity; and scheduled debt repayment.
According to the company, it will continue to sell its mined Bitcoins in order to cover operating expenses and maintain liquidity, among other things.
The announcement is just the most recent indication that major cryptocurrency players are taking drastic measures to try to survive a struggling market. The entire sector suffered during the second quarter of 2022, with June being particularly damaging. Forced selling and liquidations shook the industry, and as the price of Bitcoin fell, miners suffered as well.
Our industry is under tremendous stress as capital markets have weakened, interest rates have risen, and the economy is dealing with historic inflation, said Mike Levitt, CEO of Core Scientific, in the update.
Miners like Core Scientific are critical to the Bitcoin network’s security. Miners validate Bitcoin transactions by attempting to solve complex puzzles with expensive equipment and massive amounts of computer power, resulting in coins.
Core Scientific, formerly known as the “King of Bitcoin,” is a Bitcoin mining behemoth. It operates over 180,000 ASIC servers and stated in March that it ran more than 10% of the Bitcoin network.
Despite having cashed out over 7,000 Bitcoins, the company remains bullish on the cryptocurrency and intends to expand its Bitcoin data centers and continue to self-mine.
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