Core Scientific expects to run out of cash by the end of 2022 or sooner

Bitcoin mining company Core Scientific said in a report submitted to the US Securities and Exchange Commission that it expects the company's existing cash to be exhausted by the end of 2022 or earlier. Core Scientific is currently exploring potential strategic alternatives, such as hiring strategic advisors, raising additional capital or restructuring its existing capital structure. Foresight News previously reported that Core Scientific sold 2,285 bitcoins in October at an average price of $19,639 for total proceeds of $44.8 million. The company’s own mining operations produced 1,295 bitcoins in October. As of October 31, 2022, Core Scientifi held 62 bitcoins and approximately $32 million in cash. At the end of October, Core Scientific was exposed to owe several creditors including MassMutual, BlockFi, NYDIG, and Anchor Labs, the parent company of digital asset bank Anchorage Digital, about $1 billion. A large part of Core Scientific's loans were used for hardware and infrastructure improvements. Funding, most of which will start in the second half of 2021, with most of the debt due in 2025.