Source: AdobeStock

Bitcoin mining company Core Scientific has disclosed the outcomes of its $55 million Equity Rights Offering (ERO). The ERO, created to raise funds, experienced oversubscription, with total subscriptions surpassing the $55 million cap.

In a press release on January 8, the firm announced that the subscription period for the ERO concluded at 5:00 P.M Eastern Time on January 5, 2024.

The oversubscribed nature of the offering eliminated the need for the previously arranged ERO backstop funding, marking a significant milestone in the company’s journey towards emergence and re-listing.

With the ERO cap set at $55 million, any oversubscription will be allocated proportionally among participants who exercised their rights based on the shares of reorganized Core Scientific subscribed for.

Following proration and the maximum offering amount, excess payments made by oversubscription participants will be returned according to the company’s Rights Offering Procedures.

In response to the disclosed results, Core Scientific’s CEO, Adam Sullivan, expressed satisfaction, highlighting that the oversubscription reflects shareholders’ strong confidence in the company’s business and strategy.

Sullivan highlighted the successful rise and full repayment of previously drawn amounts on the company’s debtor-in-possession (DIP) financing, positioning Core Scientific strongly after emerging from its December 2022 Chapter 11 bankruptcy.

Core Scientific 2023 Bitcoin Production and Operations Suggest Growth Trajectory

On January 5, 2024, Core Scientific published a comprehensive report providing updates on production and operations for both December and the entire year of 2023.

Core Scientific’s December and Full Year 2023 #Bitcoin Production and Operations Update is out!

– Produced 1,177 self-mined bitcoin and an estimated
449 bitcoin from colocated miners in December
– Produced a total of 13,762 self-mined bitcoin and an
estimated 5,512 bitcoin… pic.twitter.com/Sr0Acvgb7J

— Core Scientific (@Core_Scientific) January 5, 2024

The report highlighted significant accomplishments, including the mining of 13,762 self-mined bitcoins and an estimated 5,512 bitcoins from colocated miners throughout 2023.

Source: Core Scientific Report

The company operated up to 209,000 bitcoin miners, both owned and colocated, underscoring its substantial presence in the mining sector.

In December 2023, Core Scientific achieved the production of 1,177 self-mined bitcoins and an estimated 449 bitcoins from colocated miners. These figures underscore the company’s consistent mining activities and productivity.

In addition to its self-mining operations, Core Scientific provided data center colocation services, technology, and operational support for approximately 51,000 colocated, customer-owned bitcoin miners.

This segment represented roughly 24% of the total Bitcoin miners operating in the company’s data centers as of December 31.

Customer-owned miners contributed to producing about 449 bitcoins in December, including bitcoin rewards paid to Core Scientific through proceeds-sharing agreements.

Given the optimistic expectations surrounding Bitcoin’s potential surge, fueled by the anticipation of spot-ETF application approval, Core Scientific is well-positioned to capitalize on the booming Bitcoin market.

The company is expected to generate substantial profits from its Bitcoin mining operations as the cryptocurrency’s value continues to attract attention and potential investment.

The post Core Scientific Closes $55 Million Equity Offering for Bitcoin Mining Operations appeared first on Cryptonews.