Core Scientific's Bitcoin Mining Output Drops in August amid Market Volatility

<p>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.</p><p>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.</p><p>Core Scientific Defies
BTCs Price Volatility</p><p>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.</p><p>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 <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> rewards
generated from co-located miners after covering some of the mining costs.</p><p>Last December, Core
Scientific filed for <a href="https://www.financemagnates.com/terms/b/bankruptcy/">bankruptcy</a> 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.</p><p>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.</p><p>Crypto Mining Giants
Face Declining Market Valuation</p><p>Major players in the
crypto mining industry, including Riot Platform and Marathon Digital Holdings,
were among the most affected, with their <a href="https://www.financemagnates.com/cryptocurrency/bitcoin-miners-face-a-28-billion-nightmare-and-lowest-revenues-in-a-month/" target="_blank" rel="follow">market
valuation declining</a> 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.</p><p>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.</p><p>In
light of these challenges, <a href="https://www.financemagnates.com/cryptocurrency/riot-pivots-to-electricity-and-hive-to-ai-as-bitcoin-mining-profits-plummet/" target="_blank" rel="follow">Finance
Magnates</a> reported that
cryptocurrency miners were turning to alternative avenues for income
generation, <a href="https://www.financemagnates.com/cryptocurrency/riot-pivots-to-electricity-and-hive-to-ai-as-bitcoin-mining-profits-plummet/" target="_blank" rel="follow">with
artificial intelligence (AI)</a> emerging
as an attractive option. Their reserves of cryptocurrencies have provided the
resources necessary to invest in AI.</p>

This article was written by Jared Kirui at www.financemagnates.com.