Core Scientific plans to allocate funds for purchasing bitcoin miners from struggling industry players following the halving, as revealed by the company’s CEO, Adam Sullivan, to Blockworks.
The company emerged from bankruptcy proceedings in January. Through a reorganization lasting over a year, Core Scientific reduced its debt burden to $571 million by converting equipment loans and notes into equity.
Should the stock price reach $6.81 (currently at $3.3), $670 million in funds would become available to the company. Joe Flynn, an analyst at Compass Point Research & Trading, assessed these chances as “good.”
“All these things will give us the opportunity to really get ahead of our competitors — this is what we have seen over several years as we ramped up until 2022,” Sullivan believes.
He recalled the situation in 2021 when several mining companies were forced to cancel orders for new equipment, having taken on “excessive commitments.” Therefore, Core intends to seize the opportunity to purchase modern installations like the Antminer S21 at a favorable price, the firm’s head emphasized.
Regarding Core’s existing mining infrastructure, Sullivan noted that there are still opportunities for deploying new miners and expanding capacity.
In this context, he mentioned the experience gained from bankruptcy — months pass between building a data center, ordering, and deploying equipment. During this period, the facility does not generate cash flow.
According to Sullivan, Core is currently in a strong position in terms of infrastructure, although its rapid development in 2022 did lead to the company’s financial troubles, he admitted.
As reported by Galaxy Digital, approximately 15-20% of the total computing power of the bitcoin network will become unprofitable after the halving.
Experts suggested that outdated devices from the US will be sold for relocation to regions with cheaper energy tariffs, such as Africa.