Core Scientific to raise $100 million in equity capital

The American blockchain-hosting provider Core Scientific signed an agreement with B. Riley Principal Capital II to sell to it shares worth $100 million over two years.

According to the пресс-релизу, Core Scientific has the right, but not the obligation, to issue these shares “with certain restrictions and conditions” and to send B. Riley a purchase notice.

“Providing access to additional capital in adverse market conditions increases our liquidity and expands strategic opportunities. We continue to strengthen the balance sheet and optimize operations,” said Core Scientific CEO Mike Levitt.

As consideration for the agreement’s obligations, the mining company issued 573,381 common shares to B. Riley.

Core Scientific will disclose more details in a filing with the U.S. Securities and Exchange Commission.

During May–June, the firm sold about 10,000 BTC from its reserves, significantly outpacing other mining companies in terms of sales volume. Analysts attributed this to Core Scientific’s liquidity needs amid high leverage.

In July, the company shut down equipment in Texas due to peak electricity demand caused by extreme heat. According to Levitt, this amounted to roughly 15% of capacity.

In June, Bitcoin miners generated a total revenue of $668 million — 26% lower than in the previous month.

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