On Tuesday (July 5), Core Scientific, Inc. (NASDAQ: CORZ), “a leader in high-performance blockchain data centers and software solutions”, explained why it had to sell 7,202 of the bitcoins on its balance sheet.

Core Scientific has “operated blockchain data centers in North America since 2017, using its facilities and intellectual property portfolio for colocated digital asset mining and self-mining.” The company “operates data centers in Georgia, Kentucky, North Carolina, North Dakota and Texas, and expects to commence operations in Oklahoma in the second half of 2022.”

According to a press release issued earlier today, Mike Levitt, CEO of Core Scientific, had this to say:

“Throughout June we continued to add data center capacity, grow our self-mining assets and deploy additional colocated ASIC servers for our customers. Our industry is enduring tremendous stress as capital markets have weakened, interest rates are rising and the economy deals with historic inflation. Our company has successfully endured downturns in the past, and we are confident in our ability to navigate the current market turmoil...

“We are working to strengthen our balance sheet and enhance liquidity to meet this challenging environment, and continue to believe that we will be operating in excess of 30 EH/s in our data centers by year end 2022. We remain focused on executing our plan, while taking advantage of distressed opportunities that may arise. We look forward to updating our shareholders in more detail during our regularly scheduled earnings conference call planned for August 11.“

As for the company’s $BTC sales in June, the press release stated:

“During the month of June, the Company sold 7,202 bitcoins at an average price of approximately $23,000 per bitcoin for total proceeds of approximately $167 million. As of June 30, 2022, the Company held 1,959 bitcoins and approximately $132 million in cash on its balance sheet.

“Proceeds from bitcoin sales in June were primarily used for payments for ASIC servers, capital investments in additional data center capacity and scheduled repayment of debt. The Company will continue to sell self-mined bitcoins to pay operating expenses, fund growth, retire debt and maintain liquidity.“

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