This Bitcoin Mining Company Sells Thousands Of BTC, Impact On The Crypto Market?

JAKARTA – The decline in Bitcoin prices in the last few months has caused the crypto market as a whole to enter a bearish phase. This condition also triggered a sell-off by a number of Bitcoin mining companies.

Most recently, one of the biggest Bitcoin mining companies, Core Scientific, was reported to have sold 7,202 BTC of Bitcoin last June. The sale was made at an average price of 23,000 US dollars per BTC. Core Scientific made a profit from the sale of 167 million US dollars.

Due to the massive sell-off of the amount, CoinSpeaker notes that Core Scientific has sold about 78.6% of the company's entire Bitcoin reserve. At the end of June, the company had 1,959 BTC and 132 million US dollars on its balance sheet.

The bitcoin mining company later explained that the proceeds from the sale of the BTC were used to pay for servers for ASICs. With the revenue, Core Scientific will also pay its debts and purchase additional data centers.

While the company plans to deploy an additional 70,000 ASIC servers over the rest of the year, Core Scientific already has 103,000 servers. The company also stated that it continues to sell mined BTC to pay for operating costs and provide sufficient liquidity.

An analyst from Blockware Solutions, Will Clemente, had previously managed to predict the sell-off of miners in mid-June. Clemente argues that the falling price of Bitcoin, coupled with the complexity of mining and high energy costs, has put a lot of pressure on Bitcoin mining companies. This situation led to a decline in the price of BTC in particular and the crypto market in general.