Newcomer – The minor of Bitcoin (BTC) American Basic scientist end two chords which should enable the company to have sufficient financial resources to ensure the business continuity and son development.
Core Scientific, no crypto winter for Bitcoin
L’crypto winter can make us forget the good times, which are sorely lacking in the portfolios of companies and investors in the sector. Core Scientific had largely benefited from the mild climate of 2021. The company posted excellent results for the financial year. The price of Bitcoin then rose to around $69,000.
However, the summer sun has (already) given way to winter cold and price freezes in the crypto markets. Bitcoin even allowed itself to return below $18,000 last June. Core Scientific was due the same month, sell 7,202 of his BTCs in order to finance the continuity of its operation.
This gray weather did not depress the company, however, which remains focused ” on the execution of our 2022 plans to increase our capacity “, highlighted mike levittCEO of Core Scientific.
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New Bitcoin miners on premises
At the end of July, Core Scientific signed an agreement to host mining devices of a power of 75 megawatts (MW), in its data center. The company welcomes a new roommatewhose identity remains anonymous to this day.
Bearish context obliges, the agreement would contain clauses which would allow Core Scientific to carry out this project, without harming its finances. The new tenant will have to pay advance paymentswhich finance the establishment of the infrastructure hosting the additional mining machines.
On paper, this collaboration would be “ any benefit for Core Scientific, which plans to produce approximately $50 million in annual revenueafter the full deployment of the ASIC which should be realized before the end of this year.
A financial safety net
Core Scientific attempts to thanks to its financial foundations with this new hosting agreement. However, crypto companies that are still exploding like giants yesterday have collapsed under the blows of ours.
The company also wants secure your financesthrough a new financial agreement, which gives Core Scientific the right, but not the obligation, to issue and sell $100 million worth of stock over the next two years, to the investment company B. Riley Principal Capital.
Core Scientific should thus have the financial ressources necessary to spend the winter warm. Markets are showing early signs of a gluing technique who could allow Bitcoin to approach $30,000but the end of the bearish phase of this cycle is not for all that for tomorrow.
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