Core Scientific Got $100M Equity Financing In Today’s Bear Market

BTC miner Core Scientific got $100 million equity financing despite the bearish market today and has the right to sell the shares to the investment bank B Riley as we can see more today in our latest Bitcoin news.

The biggest BTC miner by hashrate Core Scientific got $100M equity financing after an agreement with Bank B Riley to issue $100 million of shares over two years and enhance liqudity. Core Scientific has the right to issue these new shares subject to some limitations and conditions so the company plans to use the funding to bolster the balance sheet and help the miner expand as CEO Mike Levitt said.

The deal came while the bears are hammering the shares of the publicly traded miners. The stocks of some of the traded miners including Core dropped between 50% and 80% in one year. The miner issued B Riley 573,381 shares of common stock as consideration for B Riley’s commitment to buy Core Scientific shares. Core was raising cash by selling some of its BTC stashes that it had mined and last month, it sold 7202 BTC at an average price of $23,000 to raise $167 million. The miner said it aims to use the proceeds from the sales for payments towards ASIC serves and capital investments.
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As recently reported, The crypto-miner Core Scientific sold $165 million worth of BTC last month with the inflation and market turmoil pied on the pressure of public companies. The NASDAQ listed company sold 7202 BTC during June with an average price of $23,000 leaving it with 1959 BTC as bosses told investors. The proceeds will go towards covering the costs of servers and increased data capacity while paying off debts. The chief executive Mike Levitt added that the group was working to enhance the balance sheet and enhance the liquditiy in response to the current challenges.

The company said it will continue to sell the BTC it mined and use the proceeds to cover the expenses, pay the debt, and maintain liquidity. In the meantime, the group continued mining new BTC and produced 1106 new tokens in June via self-mining operations. Despite the market conditions, core Scientific expects to deploy another 70,000 new self-mining ASIC servers in the next six months and paid 90% of the cost of the new additions.