Core Scientific Inc. (NASDAQ: CORZ), which holds the third largest Bitcoin stack by a publicly traded company after MicroStrategy and Tesla, has announced that they are expanding their mining operation by 75 megawatts (MW).
The company expects $50 million in increased revenue from the addition of new ASICs to its arsenal of miners. “Core Scientific operates data centers in Georgia, Kentucky, North Carolina, North Dakota and Texas, and expects to commence operations in Oklahoma in the second half of 2022.”
The new ASICs are being deployed in Q3 2022 and are expected to be fully operational and deployed by the end of the year. The move comes during an interesting time in the market when bearish sentiment is at all time highs. The commitment to infrastructure and growth was partly funded by forced sales of the company's Bitcoin reserves.
Core Scientific has hit a tough spell recently with the turn in the economic conditions after having a great run in 2021 during the bull run. The company was forced to sell 7,202 BTC worth roughly $167 Million in order to fund operating expenses.
Despite the massive Bitcoin fire sale, the company remains in the top three publicly traded companies with the most Bitcoin in their treasury. Core Scientific currently holds 8,497 BTC or roughly $177.2 million in today’s prices, according to BusinessWare, and was last reported publicly on March 31st, 2022. MicroStrategy and Tesla are the only publicly-traded companies with more BTC on their balance sheets.
Core Scientific took advantage of a strong performance during the bull market in 2021 and is now able to build during the recent downturn. In a statement made to Cointelegraph, Mike Levitt the CEO of Core Scientific said, “Bitcoin mining firm Core Scientific posted an 803% increase in revenue and 2,443% gain in gross profit in 2021... the firm is ‘well positioned’ for further growth in 2022.”
Core Scientific’s Q2 2022 earnings call is on August 11th and Mike Levitt has said they plan on providing further details during that time.
Core Scientific is not as well known as Riot or Marathon but their continued growth despite the cyclical decline of the Bitcoin market is encouraging. It is often remarked that building during bear markets is what leads, in part, to the ability for Bitcoin to make bull runs after halvings. Also worth mentioning, is the continued growth of the American mining market and the continued trend of the U.S. mining market subsuming the mining hashrate that went offline in China in 2021.