Exchange-traded Bitcoin mining company Core Scientific has lost about $1.7 billion since the start of the year, according to its quarterly report. report filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday.
The filing shows that the company posted its second consecutive quarterly loss at the end of the third quarter. The Bitcoin miner lost $435 million in Q3 and $862 million in Q2, bringing its net loss for the year to a staggering $1.7 billion.
Core Scientific is looking for new capital
Core Scientific said it needed fresh capital before continuing operations this month. The company also noted that it expects to exhaust its existing cash resources earlier or by the end of the year.
“Given the uncertainty surrounding the company’s financial condition, there is substantial doubt about the company’s ability to continue operations until November 2023,” the company said.
The Bitcoin mining company has $32 million in cash and 62 BTC in October, up from 8,000 at the start of the year. The company attributed its losses to the severe drop in the value of BTC in USD, rising energy costs and hashish rates.
Core Scientific may be considering bankruptcy
After the significant drop in BTC price, which was caused by macroeconomic headwinds, the miner has taken several steps to increase liquidity and cope with the market.
For example, Core Scientific announced the sale of 7,202 BTC (approximately $167 million) in July at an average price of approximately $23,000. At the time, the company noted that the sales proceeds would be used to pay for ASIC servers, capital investments and debt payments.
The company has failed to pay off its debts, which amount to approximately $1 billion. The miner previously announced that he may go bankrupt if he cannot raise capital to repay his creditors.
Bitcoin mining companies are struggling amid the bear market
Meanwhile, Core Scientific is not the only mining company struggling during the intense crypto winter. In June, Canadian Bitcoin miner Bitfarms launched unloaded $62 million of his BTC to reduce his debt and maintain liquidity.
Two months ago, the largest crypto mining data center operator, Compute North, archived for Chapter 11 bankruptcy in Texas.
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