Lưu trữ cho từ khóa: Core Scientific

Bitcoin

Core Scientific seeks raising $400m to repay outstanding loans

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Bitcoin miner Core Scientific is offering $400 million in convertible notes due 2029 to repay in full the outstanding loans.

The shares of Bitcoin miner Core Scientific (CORZ) plunged as much as 10% on Aug. 14, after the company announced plans to raise $400 million through a private offering of convertible senior notes.

In an Aug. 14 press release, the crypto mining firm said the fresh capital, set to be secured from qualified institutional buyers under Rule 144A of the Securities Act, will be used to repay outstanding loans and support general corporate activities, including potential acquisitions.

The notes, bearing a 3.00% interest rate, will mature in 2029, with the issuance scheduled for Aug. 19, subject to customary closing conditions, the press release reads.

Core Scientific targets debt and upgrades with proceeds

The firm estimates net proceeds of $386.6 million, or $445 million if the option is fully exercised. Core Scientific plans to allocate over $61 million to repay loans under its January credit agreement and $150 million to redeem senior secured notes due in 2028. The remaining funds will go toward working capital and other corporate needs, per the press release.

This move follows Core Scientific’s recent announcement to modify a significant portion of its infrastructure to support high-performance computing services. The firm also reported producing only 411 (BTC) in July, a 4.4% decrease from June, and revealed it had sold 97% of its July Bitcoin production to cover operational costs.

Emerging from bankruptcy

Core Scientific has been navigating rough waters since its bankruptcy declaration in 2022, triggered by the FTX collapse. This turmoil led to a temporary suspension of its shares on the Nasdaq under the ticker CORZ, though trading resumed after the company successfully avoided closure.

Despite its financial challenges, Core Scientific maintains a robust fleet of ASIC rigs. As of the end of July, the company operated 214,000 Bitcoin miners with a total hash rate of 25.3 EH/s, distributed across seven data centers in Georgia, Kentucky, North Carolina, North Dakota, and Texas. By 2028, Core Scientific plans to expand its mining capacity by over 50%, doubling its production efforts.

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Theo Crypto News

Bitcoin

Bitcoin miner Core Scientific positive on future despite recent production drop

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Core Scientific, having sidestepped bankruptcy, remains optimistic about its business future despite a 4.4% decline in production in July.

Crypto mining company Core Scientific says the future of its Bitcoin (BTC) mining business is “bright” as it migrates miners to dedicated sites and prepares to modify a “significant portion” of its infrastructure for high hosting performance computing services.

The company is also gearing up for the integration of Block’s new 3-nanometer ASIC chip, slated for next year, per an. Aug. 5 press release. Core Scientific CEO Adam Sullivan highlighted the expansion would act as a “driver of significant miner refresh and hash rate growth.”

Despite the company’s optimistic view on its future performance, Core Scientific reported only 411 BTC mined in July, representing a 4.4% decline compared to June. The company also revealed that it had sold 97% of BTC mined in July to cover operational costs.

Post bankruptcy outlook

The Texas-based Bitcoin mining company has been navigating challenging waters since its bankruptcy declaration in 2022, a fallout from the FTX collapse. The situation led to a temporary halt in trading of its shares on the Nasdaq under the ticker CORZ, although trading was later resumed following the company’s successful avoidance of closure.

Core Scientific, despite past financial troubles, continues to operate a strong fleet of ASIC rigs. As indicated by the press release, as of end-July, the company had 214,000 Bitcoin miners and a total hash rate of 25.3 EH/s, spread across seven data centers in Georgia, Kentucky, North Carolina, North Dakota, and Texas. By 2028, Core Scientific aims to expand its mining capacity by over 50%, doubling down on its mining production.

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Theo Crypto News

Phân tích

Bitcoin mining stocks brace for technical risk

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Bitcoin mining stocks continued their recovery as Bitcoin continued rising during the weekend.

Bitcoin mining stocks are rising

Bitcoin has risen by over 26% from its lowest point this month as bulls anticipate an eventual move to $70,000.

Core Scientific (CORZ) stock rose by 2.3% on Monday, while Riot Platforms (RIOT), Marathon Digital (MARA), Iris Energy (IREN), Cipher Mining (CIFR), and CleanSpark (CLSK) jumped by over 2%.

Bitcoin mining stocks CORZ, RIOT, MARA, IREN, and CLSK

The companies have risen as investors remained optimistic that Bitcoin will continue its recovery this year. Polymarket saw 67% of users expect Bitcoin to jump to $70,000 this month, a big increase from the current $67,000.

A likely catalyst for this rally is polls indicating that Donald Trump will beat Kamala Harris in the next election.

Bitcoin will likely rise ahead of the upcoming Bitcoin event in Nashville, where Donald Trump will address the attendees. He will also attend a campaign fundraiser, for which tickets are selling for over $800,000. 

Bitcoin mining stocks do well when BTC is in an uptrend, which leads to more revenues and profits. This price action is important because many miners produced fewer coins after the halving event in April. 

The companies have also risen as signs of industry consolidation emerge. Riot Platforms made a bid for Bitfarms earlier this year while Core Scientific rejected a buyout by CoreWeave. Just last week, Bloomberg reported that Cipher Mining was considering a sale after receiving bids. 

More Bitcoin mining companies could attract acquisition offers from firms seeking to grow their artificial intelligence (AI) footprint.

Bitcoin technicals are sending mixed signals

Still, these companies face technical risks as chart patterns send mixed signals about Bitcoin prices. In a note on Saturday, Peter Brandt, a veteran prop trader, noted that the current formation was not a bullish flag. Instead, he believes that Bitcoin is in a downtrend.

However, Bitcoin looks to be forming a falling broadening wedge pattern, a popular bullish sign. In line with this, Bitcoin has moved into the third phase of the three-dives pattern, pointing to more upside. 

Bitcoin price chart

Additionally, Bitcoin has remained above the 200-day moving average, pointing to more upside. Therefore, as Michael Novogratz noted in June, more Bitcoin upside will only be confirmed if it rises above the YTD high of $73,400.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Bitcoin

Bitcoin miner Core Scientific signs 12-year deal to deliver 200MW for machine learning

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Crypto mining firm Core Scientific has signed a 12-year deal with cloud provider CoreWeave to provide resources for training artificial intelligence.

Bitcoin miners are now diversifying their portfolios by branching into areas tied to artificial intelligence (AI), with Core Scientific, a crypto mining giant that recently emerged from bankruptcy, now intensifying its focus on machine learning.

In a press release on Jun. 3, the Texas-based company said it signed a series of 12-year contracts with CoreWeave, a former crypto mining company which now specializes on cloud services for AI.

According to the agreement, Core Scientific will provide approximately 200 megawatts of infrastructure to support CoreWeave’s NVIDIA GPU operations for AI training. The infrastructure modifications are slated to begin in the second half of 2024 and become fully operational in the first half of 2025. Core Scientific projects the deal will generate over .5 billion in revenue.

“Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in AI compute, one of today’s most dynamic technology segments, while also maintaining our strong bitcoin mining franchise.”

Core Scientific CEO Adam Sullivan

The firm disclosed that about 0 million of capital investments in its infrastructure will be credited against hosting payments, capped at 50% of monthly fees until fully repaid. Additionally, the agreements offer options for further expansion, potentially making Core Scientific “one of the largest data center operators in the United States.”

Founded in 2017 by Mike Levitt and Darin Feinstein, Core Scientific quickly rose to prominence in the crypto mining industry, raising over million in equity funding from investors. However, the volatile nature of the crypto market led to financial difficulties, pushing the firm to the brink of bankruptcy in late 2022 due to a series of bankruptcies, including FTX, Celsius Network, and Three Arrows Capital. In early 2024, the company emerged from bankruptcy proceedings.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News