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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.
Core Scientific Issues $100 Million Shares 3

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.”

Mike Levitt

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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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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