Home Business Largest Bitcoin Miner Core Scientific Sold Massive Amount Of Bitcoin Lately

Largest Bitcoin Miner Core Scientific Sold Massive Amount Of Bitcoin Lately

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It was confirmed that Core Scientific, the largest bitcoin miner in North America, disposed of a large amount of its bitcoins last month. It is to purchase new mining equipment and to raise funds to repay borrowings, and it is read as evidence that liquidity is being squeezed by the sharp drop in virtual assets.

According to Bloomberg News on the 5th (local time), Core Scientific, a mining company headquartered in Austin, Texas, U.S.A., in a monthly announcement of the company, said, “Bitcoin 7202BTC mined only in the last month of June is on average at $23,000. It was sold in the market for a total of $167 million (about 211 billion won),” he said. This is equivalent to 79% of the amount of Bitcoin held by the company.

As the price of virtual assets recently plummeted and the cost of running a company exceeds the price of mined bitcoin, miners are having a hard time paying for the purchase of new mining equipment ordered during a bull market and repaying their debts. .

Core Scientific CEO Mike Levitt also said on the same day, “The virtual asset mining industry is also enduring tremendous pressure due to the recent overall decline in the financial market, rising market interest rates, and historically high inflation.”

Founded in 2017, Core Scientific is one of the largest Bitcoin miners in the world with a total of 180,000 servers for ASICs equipment. Currently, it is a company with 10% of the computing power in the Bitcoin blockchain network, and is listed on the US stock market.

Another bitcoin mining listed company, Marathon Digital Holdings and Hurt 8 Mining, have not yet sold their bitcoin after mining, but after Core Scientific, other companies are also disposing of bitcoin due to liquidity pressure. seems to start

In fact, Canadian virtual asset miner Bitfarms also sold off about half of the bitcoins mined last month, and Riot Blockchain also sold some of its bitcoins for the first time earlier this year to pay off debts.

Will Clement, an analyst at Blockwave Solutions, one of the leading analysts in the market, said, “The profit margins of miners are under severe pressure due to the falling bitcoin price, higher mining difficulty, and higher power costs. It could lead to a sell-off of Bitcoin.”

In the end, if miners increase their selling of their Bitcoin holdings, the market pressure may increase as well. In addition, as the Bitcoin price recently fell below $20,000, the hash rate, which shows the total processing power of Bitcoin miners, also plummeted. This means that the mining activity of miners who could not afford it increased as the cost increased more than the profit from Bitcoin mining, which could put additional downward pressure on the Bitcoin price.

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I am a contributor to Advancetec.co.uk. I am fascinated by technology overall, especially crypto and it's potential to disrupt the global financial system. But until that future comes, I am perfectly content immersing myself in gaming, movies, gadgets, and all of the other wonders of the modern world.