Bitcoin miner Core Scientific has expressed “substantial doubt” that they could continue their activities over the course of the next year given the current state of the company’s finances.

The corporation disclosed to the United States Securities and Exchange Commission (SEC) on November 22 that it had incurred a net loss of $434.8 million during the third quarter of 2022. This information was included in the quarterly report the company filed with the SEC. .

After reporting a net loss of $862 million for the second quarter of 2022, the total amount of the company’s net loss for the year now stands at $1.71 billion.

According to the company’s statements, more liquid resources will be required to continue its business until November 2023. The statement predicted that the company’s financial resources “will be exhausted by the end of 2022 or earlier.” “

It said it had doubts about its ability to raise funds through financing or capital markets, citing “uncertainties and current market conditions” that have reduced the availability of such sources of liquidity. He claimed that he had doubts about his ability to raise funds through financing or capital markets. Additionally, he indicated that he was concerned about his ability to generate capital through private placements of his securities.

It was also noted as one of the reasons why it is facing liquidity pressure, along with the declining price of Bitcoin and a rising hash rate. These are the three main reasons why you are now experiencing a liquidity squeeze. In addition, it was mentioned that there are more “substantial doubts” regarding its ability to continue operating because it is “very difficult to predict when or if Bitcoin prices will recover or energy costs will decrease.” This is because it is “very difficult to predict when or if Bitcoin prices will recover or energy costs will decline.”

Core Scientific had previously indicated in a filing with the SEC on Oct. 26 that a combination of factors, including a low Bitcoin price, rising electricity costs, and bankrupt crypto lender Celsius’s refusal to repay a $ 2.1 million, could result in Core Scientific’s cash resources being depleted. The filing was made because Core Scientific had previously indicated that this could happen “out of stock before the end of 2022, if not sooner if possible.”

In addition to this, you have decided to stop making payments to some of the companies you have borrowed money from in the past. As a direct result of making this choice, the company realizes that it risks being sued for non-payment and experiencing an interest rate increase.

Argo Blockchain is attempting to raise additional liquidity by subscribing to common shares, and the company has warned that, like Core Scientific, it risks ceasing operations if it is unable to do so. Argo Blockchain is attempting to generate additional liquidity by subscribing to common shares. Bitcoin mining is tough in today’s market, and Core Scientific isn’t the only company struggling to maintain operations in this environment. Argo Blockchain is an example of.

Iris Energy, an Australian-based mining company, is also showing signs that it is having difficulty meeting its financial obligations. On November 21, the company informed the SEC in a statement that it had shut down some hardware because the units were not producing enough revenue “cash flow that is insufficient for the situation.”

state of Bitcoin mining, saying in a tweet dated Nov. 22 that this type of response is to be expected whenever the price of Bitcoin is lower than the cost of mining. The tweet noted that this type of reaction should be anticipated as long as the price of Bitcoin is lower than the cost to mine.