This week, we announced US$23 million equipment financing completed with Foundry, a DCG company, that allowed us to grow our North American cryptocurrency mining fleet during the second and third quarters of 2020. Given the scale of this transaction, our view is that it is part of a steady drum beat news that is a testament to the ongoing professionalization of the digital asset mining sector.
In the early days of mining, individuals could mine BTC on home laptops (many in basements with self-installed server assemblies), today, however, with the increase in hashrate and computational difficulty, it is no longer economically reasonable to mine that way. As hashrate has scaled across the Bitcoin mining landscape, so have digital asset mining operations like Core Scientific.
2017, the year Core Scientific was formed, was a pivotal year for digital asset miners – there was high demand for growth, driven by the price of BTC, and not a lot of regulations or guidance. There was a real sense of it being a new market with lots of opportunity. The founders of Core Scientific saw this opportunity, but also the inherent risks.
As the team has progressed over the past three years, we have sought to help facilitate bringing digital asset mining out of the proverbial basement and into the board room by:
“While the bitcoin mining industry had, admittedly, a less than ideal start, Core Scientific is just one of the several professional digital asset mining companies in North America that are helping the industry mature and professionalize,” said Core Scientific Chief Customer Success Officer, Russell Cann. “At our own request, we are EY-audited and operate much like a public company, which is what attracts institutional investors, with significant sums of capital under management, to work with us as they look to diversify their portfolios.”
As we have seen explosive growth in the digital mining sector in 2020, we have also focused on ensuring we are a part of educating the public about digital mining, and the geopolitical importance of ensuring that the United States is a leader in this space, and not a laggard. To that end, we have become a member of The Chamber for Digital Commerce, the world’s leading trade association representing the digital asset and blockchain industry. Through the Digital Chamber, we have been able to ensure that we are helping to lead conversations with lawmakers around the country to help ensure fair and relevant laws and regulations are developed for the digital asset mining sector.
Clear regulations are an important piece of the puzzle for institutional investors looking to diversify their portfolio exposure. At Core Scientific, we are ensuring we are setting up a company that is viewed as a trusted enterprise partner in the digital asset mining infrastructure space.
Mike Colyer, CEO of Foundry, a DCG Company, and a former Core Scientific executive, said: “Prior to joining Foundry, I led business development efforts at Core Scientific, where I was able to witness firsthand how the company is pioneering innovation in blockchain infrastructure. We’re very confident in the organization and its goal, which is why we’re making a significant investment into the cryptocurrency mining industry with Core Scientific.”
As we look to the future of digital asset mining infrastructure, the Core Scientific team will be at the forefront of setting the right example as a thriving, trustworthy, professional and responsible operator.
Learn more about our blockchain solutions: https://www.corescientific.com/blockchain