Core Scientific To Raise $100 Million Equity
- July 22, 2022
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American blockchain hosting provider Core Scientific has signed an agreement with B. Riley Principal Capital II to sell $100 million worth of shares over two years. According to
American blockchain hosting provider Core Scientific has signed an agreement with B. Riley Principal Capital II to sell $100 million worth of shares over two years.
According to the press release, Core Scientific has the right, but not the obligation, to issue these shares “subject to certain restrictions and conditions” and send a notice of purchase to B. Riley.
“Accessing additional capital in adverse market conditions increases our liquidity and expands our strategic options. “We continue to strengthen our balance sheet and streamline our operations,” said Mike Levitt, CEO of Core Scientific.
As compensation for obligations under the agreement, the mining company issued 573,381 common shares to B. Riley.
Core Scientific will disclose the detailed information in a report to the US Securities and Exchange Commission.
In May-June, the firm sold around 10,000 BTC from its reserves, significantly outpacing other mining companies in terms of sales. Experts explained this with Core Scientific’s need for liquidity on the backdrop of high leverage.
In July, the company shut down equipment in Texas due to peak power demand caused by excessive heat. According to Levitt, it was about 15% of capacity.
Recall that in June, the first cryptocurrency miners generated a total revenue of $668 million, which is 26% less than the previous month.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
