Core Scientific To Raise $100m In Equity

Core Scientific To Raise $100m In Equity

Core Scientific To Raise $100m In Equity

American blockchain hosting provider Core Scientific has signed an agreement with B. Riley Principal Capital II to sell shares worth $100 million over two years.

According to a press release, Core Scientific has the right, but not the obligation, to issue these shares “subject to certain restrictions and conditions” and send B. Riley a notice of purchase.

“Getting access to additional capital in adverse market conditions enhances our liquidity and expands our strategic options. We continue to strengthen our balance sheet and streamline operations,” said Mike Levitt, CEO of Core Scientific.

As compensation for obligations under the agreement, the mining company issued 573,381 ordinary shares to B. Riley.

Core Scientific will disclose detailed information in a report to the US Securities and Exchange Commission.

In May-June, the firm sold about 10,000 BTC from its reserves, significantly outperforming other mining companies in terms of sales. Experts explained this by Core Scientific’s need for liquidity against high leverage.

In July, the company shut down equipment in Texas due to peak power demand caused by extreme heat. According to Levitt, it was about 15% of the capacity.

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