- Core Scientific has taken some big steps to enhance the liquidity of bitcoin.
- Subject to certain restrictions and requirements, Core Scientific has the option but is under no obligation to issue these additional shares.
- In exchange for B Riley’s promise to buy Core Scientific shares, the miner gave B. Riley 573,381 shares of common stock.
Agreement With Investment Bank
Core Scientific has taken some big steps to enhance the liquidity of bitcoin. This is by signing an agreement with B Riley, an investment bank, to issue several shares to the bank over a span of two years. Core Scientific is the largest bitcoin miner if we look in terms of hash rate. Core Scientific has the right to supply the new shares. It’s an important point to note that the firm doesn’t have any obligation to do so.
According to Core CEO Mike Levitt in the release, the firm intends to use this additional money to strengthen its balance sheet and support the miner’s growth. The agreement is made while shares of the publicly listed miners suffer from the crypto bear market. Some of these publicly listed miners’ stocks, including Core, have plunged from 50% to 80% this year.
In exchange for B Riley’s promise to buy Core Scientific shares, the miner gave B. Riley 573,381 shares of common stock.
Selling some of the bitcoin, it has been mining has helped Core raise money. Last month, it raised nearly $167 million by selling 7,202 bitcoin at an average price of $23,000. The miner stated that it planned to utilize the sales earnings primarily for debt repayment, ASIC server payments, and capital expenditures for more data center space.
Source: https://www.thecoinrepublic.com/2022/07/22/core-scientific-financing-the-bear-market/