Bitcoin Miner Core Scientific Strikes $100M Stock Deal After Dumping BTC

Core Scientific is looking to bolster its balance sheet to help navigate the bear market

article-image

Bitcoin mining farm | Source: Shutterstock

share

key takeaways

  • Core Scientific signed an agreement to sell $100 million shares to investment firm B. Riley
  • The miner sold 7,202 bitcoin for roughly $167 million in June

Major bitcoin mining outfit Core Scientific is raising capital by agreeing to sell $100 million in equity over the next two years to investment firm B. Riley Principal Capital.

A Thursday statement shows the miner has the right, but no obligation, to sell and issue its shares to B. Riley, subject to limitations and conditions such as the market environment and trading price of the stock.

To satisfy the agreement, Core Scientific issued the firm 573,381 shares of common stock for its commitment to the equity financing facility. Core Scientific stock currently trades for $1.87. 

According to an SEC filing, the miner will use proceeds from its common stock sale for “general corporate purposes.” “Securing access to additional capital during adverse market conditions enhances our liquidity and expands our strategic optionality,” Mike Levitt, Core Scientific’s CEO, said in a statement.

The Austin-based firm’s equity financing comes amid a broad market downturn that has weighed on miners’ balance sheets. During the bull market, many bitcoin miners took on high-interest loans to fund their rapid expansions, which included deals to acquire large inventories of ASIC miners.

Core Scientific in particular maintains high levels of machine-collateralized debt compared to its peers, Arcane Research reported last month. The company does however boast strong cash flow thanks to its commanding hash rate, historically more than any other public mining stock — funds it needs to pay off machine deliveries throughout the year. 

A growing number of cryptocurrency miners have recently been forced to sell a substantial portion of the BTC they’ve mined. Core Scientific said it sold 7,202 BTC for about $167 million in June, and proceeds were used for ASIC servers, data center capacity and debt payments. 

At the end of last month, Core Scientific held 1,959 BTC ($45.6 million) and about $132 million in cash on its balance sheet.

Some believe miners dumping their crypto is a standard aspect of bitcoin’s market cycle.

“Some miners take on too much debt — often by buying lots of mining equipment using loans — and then face so much financial pressure they have to sell their bitcoin en masse,” said Les Borsai, co-founder of Wave Financial. “Once such miners sell what they have on hand, this usually marks the market bottom.”

Core Scientific’s shares are down 82% so far this year and have fallen 12% in the last month.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

tg trading bot report graphic.png

Research

Telegram trading bots have found their primary niche in highly speculative token launches and retail-dominated memecoin markets, with many features specifically tailored to token sniping and copy-trading strategies.

article-image

Paradigm’s Charlie Noyes thinks that the attention on stablecoins is well-deserved after Mesh’s $82 million round

article-image

Crypto may benefit from developments during the second quarter after a rough start to the year

article-image

With a friendlier regulatory outlook and the airdrop flow being stemmed, some are looking to how new native tokens can become valuable assets

article-image

The recent action paints an uncertain picture for future monetary policy moves

article-image

Is the finance world becoming “more liquid”? Experts give their takes as TradFi players consider new moves