The miner has been given a lifeline that might allow it to survive the current crypto winter after a barrage of bad news throughout 2022.
The stock of bitcoin miner Core Scientific has increased by almost 200% in the last four days as a result of the positive response to a funding proposal made on December 14 by a current creditor who is hoping the company may avoid bankruptcy.
Shares of the troubled miner were a little over 13 cents on December 12 before rising 198% to close at nearly 40 cents on December 15.
Marketbeat, a financial media company, reports that traders bought 6,572 call options on December 15—136% more than the typical volume of 2,780—which suggests that many of them are positive on the stock and believe the price will keep rising.
Some Bitcoin users bought shares as well, anticipating a significant profit should the financing strategy be successful and the company survives the bear market.
A rally could be the beginning of a trend reversal or just a dead cat bounce. Core Scientific has been hit with a lot of bad news throughout 2022, with the stock down 95% since the start of the year despite the recent rally.
On Dec. 14, his B. Riley of the financial services platform wrote a letter to Core shareholders and lenders detailing a $72 million financing plan. If the deal goes through, the first $40 million will be funded “immediately and without contingencies,” provided Core agrees to stop payments to equipment lenders until Bitcoin’s price rises above $18,500. , the remaining funds will be used. Major cryptocurrencies have been trading since November 9 at:
B. Reilly has suggested that this funding will provide Core with two years of operating capital, and their analysts estimate that miners could generate about 165 million dollars a year at a Bitcoin price of $18,000. I’m noticing that you can generate a profit of $1,000 and you predict that you can generate an additional $20 million for every $1,000 price. Gain.