Bitcoin miner core scientific gets $100M equity financing despite bear market
|The miner has the right but no obligation to sell the shares to investment bank B Riley.
The largest bitcoin miner by hashrate, Core Scientific (CORZ), has signed an agreement with investment bank B Riley to issue up to $100 million of shares to the bank over two years to enhance liquidity.
Core Scientific has the right but no obligation to issue these new shares, subject to some limitations and conditions, according to a statement. The company plans to use this additional funding to bolster its balance sheet and help the miner expand, Core CEO Mike Levitt said in the statement.
The deal comes as a crypto bear market hammers shares of the publicly traded miners. Stocks of some of these publicly traded miners, including Core, have fallen anywhere between 50% to 80% this year.
The miner has also issued B. Riley 573,381 shares of common stock as consideration for B Riley’s commitment to purchase Core Scientific shares.
Core has been raising cash by selling some of the bitcoins it has been mining. Last month, it sold 7,202 bitcoins at an average price of $23,000 to raise about $167 million. The miner said it intends to use the proceeds from the sales mainly for payments toward ASIC servers, capital investments in additional data-center capacity and debt repayments.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.