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Bitcoin mining company Core Scientific lost $1.7 billion in 2022

The listed Bitcoin-Mining company Core Scientific has lost about $1.7 billion year-to-date, according to its quarterly report report was filed with the United States Securities and Exchange Commission (SEC) on Tuesday.

The filing shows that the company posted its second straight quarterly loss at the end of the third quarter. The bitcoin miner lost $435 million in the third quarter and $862 million in the second quarter, bringing its net loss for the year to a staggering $1.7 billion.

Core Scientific is looking for fresh capital

Core Scientific said it needs fresh capital before it can resume operations this month. The company also noted that it expects its existing cash balance to be depleted sooner or by year-end.

“Given the uncertainty surrounding the Company’s financial condition, there are significant doubts as to the Company’s ability to continue as a going concern through November 2023,” the company said.

The bitcoin miner holds $32 million in cash and 62 BTC as of October, up from 8,000 at the start of the year. The company attributed its losses to the sharp decline in BTC’s USD value, rising energy costs and hash rates.

Core Scientific considers bankruptcy

Following the significant drop in BTC price triggered by macro headwinds, the miner has taken several steps to increase liquidity and cope with the market.

For example, Core Scientific announced the sale of 7,202 BTC (about $167 million) in July at an average price of about $23,000. At the time, the company indicated that proceeds from the sale would be used to pay for ASIC servers, capital investments, and debt repayments.

The company was unable to pay its debts, which total about $1 billion. The miner previously revealed it could file for bankruptcy if it cannot raise capital to repay its creditors.

bitcoin mining Companies struggle amid bear market

Meanwhile, Core Scientific isn’t the only mining company struggling with the intense crypto winter. In June, Canadian bitcoin miner Bitfarms unloaded $62 million of its BTC to reduce its debt and maintain liquidity.

Two months ago, the largest operator of crypto mining data centers, Compute North, filed for Chapter 11 bankruptcy in Texas.

Source: Crypto News Deutsch

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