Core Scientific Issues $100 Million Shares
The largest bitcoin miner by hashrate, Core Scientific (CORZ), has signed an agreement with investment bank B Riley to issue up to $100 million of shares to the bank over two years to enhance liquidity.
According to a statement, Core Scientific has the right but not the obligation to issue these new shares, subject to certain limitations and conditions. The company plans to use this additional funding to strengthen its balance sheet and help the mining company expand, Core CEO Mike Levitt said in the statement.
The deal came as a crypto bear market hit the shares of publicly traded miners. Shares of some publicly traded miners, including Core, have fallen between 50% and 80% this year.
The miner also issued B. Riley 573,381 shares of common stock to review B Riley’s commitment to purchase Core Scientific stock.
Mike Levitt, CEO of Core Scientific, said:
“We continue to strengthen our balance sheet and streamline our operations as we remain focused on expanding our capacity for self-mining and colocation services. This Committed Equity Facility with B. Riley is an important additional funding source that will help us grow and create shareholder value.”
Core raised the cash by selling some of the bitcoins it mined. Last month, it sold 7,202 Bitcoins at an average price of $23,000 to raise around $167 million.
The miner said it intends to use the proceeds from the sale primarily for payments for ASIC servers, capital investment in additional data center capacity, and debt repayment.
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