Bitcoin Miner Core Scientific Secures $100M Equity Funding Despite Bear Market

Core Scientific (CORZ), the largest bitcoin (BTC) miner by hashrate, or total computing power, has signed an agreement with investment bank B. Riley to issue up to $100 million worth of stock to the bank over two years in order to improve liquidity.

Core Scientific has the right but not the obligation to issue these new shares, subject to certain limitations and conditions, according to a statement. The company plans to use the additional funding to strengthen its balance sheet and help the miner grow, Core CEO Mike Levitt said in the statement.

The deal comes as a crypto bear market hammers the shares of publicly traded miners. Shares of some of these publicly traded miners, including Core, have fallen 50-80% this year.

The miner also issued B. Riley 573,381 shares of common stock in return for B. Riley’s commitment to purchase Core Scientific stock.

Core raised funds by selling some of the bitcoin it mined. Last month, it sold 7,202 bitcoins at an average price of $23,000 to raise around $167 million. The miner said he intended to use the proceeds from the sales primarily for payments to ASIC servers, capital investments in additional data center capacity, and debt repayment.

Read more: Crypto miners face margin calls and defaults as debt matures in bear market

Carol M. Barragan