Core Scientific Inc., a top cryptocurrency miner, sold most of its Bitcoin holdings in June as the plunge in digital assets is putting pressure on even industry leaders.
Core Scientific sold 7,202 mined coins last month for $ 167 million, a 79% drop. Bitcoin Holding a balance sheet, according to the company’s monthly renewal. The Austin, Texas-based company currently holds 1,959 coins.
Founded in 2017, Core Scientific is the world’s largest Bitcoin miner with 180,000 servers and nearly 10% of its current computing power to protect the entire Bitcoin blockchain network as of June 30. It is one of.
Cryptography Miners are struggling to repay their expensive mining machinery debt and complete large purchase orders during a bullish run a few months ago. The operating costs of some miners exceeded mining revenues as Bitcoin entered its worst quarter in more than a decade. The high-profile cryptocurrency explosion has hit the industry and contributed to the world’s largest cryptocurrency decline, falling below $ 20,000 last month for the first time since 2020.
JPMorgan Chase & Co said in a memo last month that Bitcoin miners who need to sell could put pressure on token prices. Bitcoin miners are forced to take advantage of cryptocurrency stashes due to price plunges, rising energy costs and intensifying competition.
The number of coins miners are sending to crypto exchanges is steadily increasing. According to an analysis by Arcane Research, the value of Bitcoin plummeted by 45%, and several listed Bitcoin miners sold more than 100% of their total production in bulk in May.
Cryptocurrencies are suffering this year amid Fed rate hikes and stubborn high inflation. Investors were further upset by the collapse of the Terra / Luna ecosystem and continued concerns about hedge funds Three Arrows Capital Ltd.
According to CoinMetrics data, Bitcoin miners who earn tokens by running a network of computers and validating transactions on the blockchain are usually cryptocurrency “HODLers”, totaling about 800,000 Bitcoins. I own it.
Public mining companies often hold most of the mined Bitcoin to act as a stock market agent that attracts investors who want to acquire cryptocurrency exposure without holding tokens directly. .. Some companies believe that large Bitcoin holdings will push up the balance sheet in the long run as the value of tokens increases over time.
