Resource: Cryptoslate.com
7 months ago
Date: 23 Nov 2022 - 17:29

Core Scientific one of the largest publicly traded Bitcoin miners might not make it until the end of the year.In its quarterly report filed with the SEC the company said 8220substantial doubt8221 exists about its ability to continue going if it fails to raise liquidity.8220However the ability to raise funds through financing and capital market transactions is subject to many risks and uncertainties and current market conditions have reduced the availability of these capital and liquidity sources.The Company anticipates that existing cash resources will be depleted by the end of 2022 or sooner. Given the uncertainty regarding the Companys financial condition substantial doubt exists about the Companys ability to continue as a going concern through November 2023.8221Doubts about the companys solvency were first raised at the end of October when a previous filing revealed its operating performance and liquidity have been severely impacted by rising electricity costs and falling Bitcoin prices.Core Scientifics 10Q filing now shows no doubt about the companys struggles as the company reported a 434.8 million net loss in the third quarter alone. The 862 million in net losses accrued in the second quarter bring the companys total net losses for the nine months ended Sept. 30 to 1.71 billion.Table showing Core Scientifics Q3 and yearly net losses in 2021 and 2022 Source SECThroughout the year the company generated only 519 million in revenue. It reported 162.5 million in revenue for the third quarter.Table showing Core Scientifics Q3 and yearly revenue in 2021 and 2022 Source SECCore Scientific claims that the losses it accrued were a result of rising electricity costs and a rapidly declining price of Bitcoin. The majority of the companys revenue from hosting came from two customers one accounted for 46 of its revenue in 2022 while the other accounted for 19.In a separate part of the filing the company said Celsius was 8220one of its largest customers.8221 Since filing for voluntary relief under chapter 11 in September Celsius has reportedly been attempting to withhold payment of certain charges billed as part of its contract with Core Scientific. The company is actively seeking a resolution from the bankruptcy court.However the filing reveals that losses Core Scientific accrued from other expenses could dwarf the amounts its seeking from Celsius.The company revealed that it provides hosting services to entities that are managed and owned by its executives. It also sold mining equipment to its own executives with the revenue from these sales more than doubling when compared to last year.Equipment sales revenue from its own executives more than doubled from 29.1 million in 2021 to 67.3 million in 2022.Since the beginning of the year Core Scientific spent 1.8 million on private jets and business trips for its executives. It also lost 13.1 million on exchanges and entered into an agreement to lease office space for its new headquarters for a base rent of 14 million to be paid over a period of 130 months.The post Core Scientific might not make it past November 2023 after revealing 1.7B in losses appeared first on CryptoSlate.

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