Public Miners Start Selling Bitcoin Treasuries
As June monthly production updates roll out over the next week, Core Scientific and Bitfarms have both sold nearly 50% or more of their bitcoin treasuries.
Core Scientific Sells 7,202 BTC
Today Core Scientific, the world’s third-largest publicly traded bitcoin miner by market cap ($525.52 million) announced in its June monthly update the sale of 78.6% of its bitcoin holdings.
“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.”
In our latest mining issue released last week, we covered some of the dynamics of the bitcoin mining cycle, and the hash price bull and bear market.
“As stated previously, hash price and the valuation of mining equipment/operations are extremely correlated. If you expect hash rate to appreciate relative to the price of bitcoin over a given period of time, it is not an attractive time to buy bitcoin” - Mining Hash Price Bear Market