New arrival – The lesser of Bitcoin (BTC) American Basic scientific concludes two chords which should allow the company to have sufficient financial resources to guarantee the business continuity and its development.
Core Scientific, no cryptocurrencies for Bitcoin
L’crypto winter it can make us forget the good times, which are sorely lacking in the portfolios of companies and investors in the sector. Core Scientific benefited greatly from the mild weather in 2021. The company posted strong results for the year. Bitcoin’s price then rose to around $ 69,000.
However, the summer sun has (already) given way to winter cold and freezing prices in cryptocurrency markets. Bitcoin even allowed itself to drop back below $ 18,000 last June. Core Scientific was due to expire the same month, sell 7,202 of its BTC in order to finance the continuity of its operation.
However, this gray weather has not depressed the company, which remains concentrated ” on executing our 2022 plans to increase our capacity “, highlighted Mike LevittCore Scientific CEO.
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New Bitcoin miners on site
In late July, Core Scientific signs an agreement to host a power of 75 megawatt (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 that will allow Core Scientific to carry out this project, without damaging its finances. The new tenant will have to pay advance paymentswhich will finance the construction of the infrastructure that will house the additional mining machines.
On paper, this collaboration would be ” all the advantages for Core Scientific, which expects to generate approx $ 50 million in annual revenueafter the full deployment of ASICs which is expected to take place by the end of this year.
A financial safety net
Core Scientific tries to consolidate its financial foundations with this new hosting agreement. However, cryptocurrency companies that were still giants yesterday have collapsed under the blows of bears.
The company also wants protect your financesthrough a new financial agreement, which gives Core Scientific the right, but not the obligation, to issue and sell $ 100 million worth of shares in the next two years, to the investment company B. Riley Principal Capital.
Core Scientific should therefore have the financial resources necessary to spend the warm winter. Markets are showing encouraging signs of a technical rebound who could allow Bitcoin to get close to $ 30,000but the end of the bearish phase of this cycle is not for tomorrow.
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