Krypto Miner Core Scientific Downsizing after $ 840 million

Krypto Miner Core Scientific Downsizing after $ 840 million

Core Scientific (Corz) reduced its number of employees in the second quarter of the cost reduction measures to cope with market turbulence by 10 %, the cryptocurrency miner announced on Thursday.

The company recorded a quarterly loss of $ 861.7 million, including $ 840 million due to a reduction in assets and a burden of $ 150.2 million due to price declines in digital assets.

"To date we have reduced about 10 % of our workforce - none of which are involved in our data center activities," said CEO Mike Levitt during the quarter result call .

According to CFO Denise Sterling, job cuts were not part of the core business of the miners.

Apart from layoffs, the miner said that he had hired his business with the development of blockchain technology, re-negotiated supplier contracts and adapted his organization. The company expects the operating costs to be 25 % lower compared to the first half of the year in the second half of the year.

The income for the quarter rose from $ 75.3 million at the same time in the same time to $ 164 million and, according to the fact set, exceeded the average analyst estimates of $ 161.8 million. This jump was "mainly driven by increasing the income from digital asset mining and hosting income," said the company.

Core Scientific currently operates 125,000 self-mining servers-miners who belong to third parties but are hosted by core. By the end of the year, the company expects 170,000 servers to be in operation and finally wants to expand its self-mining fleet beyond this number.

Bitcoin miner edition and Outlook

The company produced 3,365 bitcoins in the quarter, which corresponds to a decline of 4 % compared to Prevocate . It is said that the current mining production is an average of 40 bitcoins per day, with a record of 45.7 bitcoins in a single day this week.

last month, core

The miner holds 1,959 Bitcoin and a cash stock of $ 128 million in its balance sheet at the end of June 30th.

Insider of the crypto industry expected a risk of miner failures in both public and private miners and in hosting facilities, although these risks have slightly decreased with a modest recovery of the Bitcoin price. Bitcoin was last traded at $ 23,937, a plus of almost 24 % in the last month, data from Blockworks-forschung indicates.

In the first quarter, Core reduced his forecast for the total hashrate to 30 to 32 Exahash per second with a total output of about 1 gigawatt.

hashrates or the entire computing power used to process transactions is a key metric for Bitcoin miner because it indicates how quickly a miners' machines in competition with another work. Core confirmed the same hashrate forecast for the rest of the year.

The competing Miner Marathon Digital recorded a quarterly net loss of around $ 192 million, whereby his Bitcoin production decreased by 44 % before the quarter.

The Core shares have so far fallen by 70.6 % this year, but have made up for their losses last month. They were last traded in the pre -exchanged session on Friday to $ 3.24 per share, data from Handelsicht Show.

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The article KRYPTO Miner Core Scientific Downsizing after $ 840m impairment charge first appeared at Blockworks.