Mike Levitt, chief of Core Scientific, stated that Core Scientific sold more than 7,000 Bitcoins to pay for costs in an economy experiencing “historic inflation.”
Core Scientific, a crypto miner, sold $165 million worth Bitcoin last week as market turmoil and inflation increased the pressure on public crypto companies.
According to bosses, the NASDAQ-listed company sold 7,202 Bitcoin in June for an average of $23,000. This left it with only 1,959 Bitcoin.
The company had $132million in cash as of June 30.
Core Scientific stated that the proceeds will be used to cover server costs, increase data capacity and pay off debts.
Mike Levitt, chief executive officer, stated that the group was working to “enhance our liquidity and strengthen our balance sheet” to address current challenges.
He stated that “our industry is experiencing tremendous stress because capital markets are weakening, interest rates rise and the economy deals avec historic inflation.” “Our company has been able to weather downturns in the past and we are confident that we can navigate this market turmoil.”
The company stated that it will continue to sell self-mined Bitcoin, and use the proceeds for expenses, growth financing, debt repayment, and liquidity maintenance.
The group also continued to mine Bitcoins, producing 1,106 new tokens in June via its self-mining operations.
Core Scientific expects to continue deployment of another 70,000 self-mining ASIC server over the next six month despite the market conditions. Core Scientific has already paid 90% of this cost.
After the fall in crypto asset prices, public-traded crypto miners are selling their reserves to reduce their balance sheets.
Many miners had held large Bitcoin treasuries up until now. However, the bear market has rendered the practice less lucrative and some have had to sell their holdings in order to pay costs.
However, there are concerns that these dumps could cause Bitcoin prices to drop further, further aggravating conditions.