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Core Scientific’s Bitcoin Mining Output Drops in August

source-logo  financemagnates.com 07 September 2023 16:39, UTC

The cryptocurrency mining company Core Scientific has released its production and operations update for August, highlighting 206,000 owned and co-located Bitcoin miners. The company managed to produce 965 self-mined Bitcoins and an estimated 403 Bitcoins from co-located miners.

Comparatively, in July, Core Scientific operated 210,000 owned and co-located Bitcoin miners. During this period, the company successfully produced 1,022 self-mined Bitcoins, with an additional 493 Bitcoins generated from co-located customers. According to the company’s report, Core Scientific posted a potential rate of 22.2 EH/s at its data center facilities in Georgia, Kentucky, North Carolina, North Dakota, and Texas.

Core Scientific Defies BTCs Price Volatility

Similarly, in June, Core Scientific maintained its 210,000 owned and co-located Bitcoin miners. During this month, the company generated 1,030 self-mined Bitcoins and an additional 508 Bitcoins for co-location customers. With approximately 144,000 self-mined Bitcoin miners in operations, constituting nearly 69% of the total miner count, the company had a self-mining hash rate of 15 EH/s in June.

Co-location agreement is a form of contract recently entered by Core Scientific with its customers. These agreements allow the company to receive a portion of Bitcoin rewards generated from co-located miners after covering some of the mining costs.

Last December, Core Scientific filed for bankruptcy protection following a downturn in the cryptocurrency space. In the latest report, the company has indicated that it aims to successfully emerge from this process in the fourth quarter.

Generally, cryptocurrency miners have witnessed volatility amid the low prices of Bitcoin. The plummeted by over 7% last month, reaching the lowest level in more than two months at USD $26,000, Finance Magnates reported. This abrupt decline had a profound impact on the market capitalization of publicly listed Bitcoin miners and other digital asset firms, causing a 30% drop over the course of the month.

Crypto Mining Giants Face Declining Market Valuation

Major players in the crypto mining industry, including Riot Platform and Marathon Digital Holdings, were among the most affected, with their market valuation declining by $1.1 billion (31%) and $800 million (25%), respectively. Other prominent players, such as Canaan, Hut 8 Mining, and Cipher Mining Technology, also witnessed significant losses in their market shares.

Data from Glassnode showed that Bitcoin miners’ revenues hit their lowest in a month, hovering just below USD $170 million. Faced with this situation, miners were presented with a difficult choice: selling their Bitcoin reserves to cover operational expenses or reducing profits during the challenging period.

In light of these challenges, Finance Magnates reported that cryptocurrency miners were turning to alternative avenues for income generation, with artificial intelligence (AI) emerging as an attractive option. Their reserves of cryptocurrencies have provided the resources necessary to invest in AI.