Core Scientific, one of the top crypto mining companies sold out 79% of Bitcoin held in June to survive the bear market. The company sold 7,202 Bitcoins for about $ 23,000 each, earning nearly $ 167 million.
According to the monthly company publication, Core Scientific used cash to pay its ASIC server and scheduled debt. As of June 30, Core Scientific holds 1,959 Bitcoins. That’s about $ 132 million.
Mike Levitt, CEO of Core Scientific, said the current bear market is putting a lot of pressure on the market, while interest rates and inflation are skyrocketing. He said:
“We have endured the recession of the past. We are confident in our ability to survive the current market turmoil.
We are working to strengthen our balance sheet and liquidity to meet this difficult environment, and we continue to believe that our data centers will operate in excess of 30 EH / s by the end of 2022. “
Core Scientific has more than 180,000 servers worldwide, providing nearly 10% of the world’s computing power. The company also said it will continue to sell self-mined Bitcoin to pay for various costs over the next few months.
Mining company in trouble
In early June, when Bitcoin traded for just over $ 30,000, there was a tendency to sell out among Bitcoin miners. Still, miners tended to cash out quickly as they expected BTC prices to fall further.
When Bitcoin reached its 18-month low in the weeks of June, they proved to be correct. Mining equipment older than 2019 has lost profitability as BTC prices have fallen to $ 22,600. According to a recently released survey, public mining companies have reduced the difficulty of mining, but 30% of BTC reserves in the first four months of 2022 to survive the crypto winter. Had to sell.
Core Scientific is not the only mining company that has become public due to financial difficulties. Compass mining was reportedly unable to pay $ 1.2 million in electricity bills in June. The company dismissed the complaint, but the CEO and CFO resigned.
FTX founder Sam Bankman-Fried is closely watching the development at the forefront of the mining industry. He is reportedly hoping that problems between mining companies will spread and are trying to buy some of the mining companies that are suffering.
The coldest winter ever
According to Glassnode, the crypto market is undergoing various winters, but the current market is much colder. The current bear market is the first market where Bitcoin and Ethereum are trading lower than the ATH of the previous cycle.
The report also revealed that June 2022 was the worst performing month for Bitcoin since 2011. However, even under these conditions, bullish feelings are still seen. The numbers indicate the active address and the number of transactions dropped significantly in June. At the same time, Hodler uses affordability to buy over 60,000 Bitcoins a month.
Despite the coldest winter, the purchase rate is “The most aggressive rate in history” So far.
