Core Scientific sells 79% of Bitcoin reserves to survive the bear market

One of the top criptocurrencies mining companies, Core Scientific, sold 79% of its holdings in June to survive the bear market. The company sold 7,202Bitcoins for $23,000 each, gaining nearly $167 million.

According to the monthly company announcement, Core Scientific used the cash to pay for ASIC servers and scheduled debt. As of June 30, Core Scientific has 1,959 Bitcoins, which equates to approximately $132 million.

Core Scientific CEO Mike Levitt said that the current bear market is putting tremendous pressure on the market, while interest rates and inflation are also rising. He said something.

Our company has endured a lot of downturns in the past, and we are confident in our ability to navigate the current market turmoil. We continue to believe that we will have over 30 EHs in our data centers by year-end 2022, and we are working to strengthen our balance sheet and enhance liquidity to meet this challenging environment. Core Scientific has over 180,000 servers around the world and provides nearly 10% of the global computing power. The company said it would continue to sell self-mined Bitcoins to pay for various expenses in the coming months.

In early June a sell-out trend emerged amongst the miners ofBitcoin when it was traded for just over $30,000. As they anticipated a further downfall in the BTC prices, miners were inclined towards immediately cashing out.

They were correct when they saw its 18 month lowest in June, a few weeks into June. BTC prices went as low as $22,600, causing mining equipment older than 2019 to lose profitability. According to a study, public mining companies had to sell 30% of their BTC reserves during the first four months of 2022 to survive the crypto winter, despite the lowering mining difficulty.

Core Scientific isn't the only mining company that has gone public with its financial struggles. Compass Mining didn't pay its $1.2 million electricity bill in June. The CEO and CFO resigned after the company rejected the allegations.

FTX founder Sam Bankman-Fried has been closely watching the developments on the mining front. He expects the mining companies to spread, and he is looking to purchase some of the distressed mining firms.

Glassnode says that the current one is the coldest of the various winters in the market. The bear market is the first whereBitcoin andEthereum are traded lower than their ATH in the previous cycle.

The report said June 2022 was the worst performing month forBitcoin since 2011. Even under these conditions, bullish sentiment is still visible. Transaction counts decreased significantly in June, and the numbers show active addresses. Hodlers are taking advantage of the affordable prices and buying more than 60,000 Bitcoins per month.

The buying rate is the most aggressive rate in history despite being the coldest winter.