Mining company Core Scientific returns to the markets

"Today's plan was crucial to our restructuring. We are ready to return at the end of this month as an even stronger company with a success-hungry and highly motivated team," Core Scientific CEO Adam Sullivan said. “As demand for Bitcoin and high-value programming tools continues to grow and we execute our growth plan, we look forward to creating value for our fortresses by providing continued backup and superior efficiency.” Core Scientific produced 13,700 BTC on its own and 5,500 through partner miners in 2023, making it one of the largest crypto miners in the United States. However, the combination of a prolonged bear market, rising energy prices, increasing mining difficulty, and loans to bankrupt crypto firm Celsius led the firm to bankruptcy in December 2022. The company was trading on the Nasdaq Global Select Market under the symbol "CORZ" but was delisted after bankruptcy proceedings began. Core Scientific emphasized that the restructuring plan was made possible due to the "significant increase" in Bitcoin and hash prices in the period since the bankruptcy collapse in December 2022. There was an outflow of $1.1 billion from the Grayscale spot Bitcoin exchange-traded fund (ETF) in the last three days as investors wanted to exit the fund after the discount rate fell to its lowest level in nearly three years. Bloomberg ETF analyst James Seyffart emphasized in his X (Twitter) post that an estimated outflow of $594 million occurred on the third day of trading alone. Seyffart stated that there have been inflows into other recently launched Bitcoin ETFs, but it is not clear whether these inflows exceed the outflows from Grayscale Bitcoin Trust (GBTC) on January 16: “Most other ETFs have seen inflows, but I doubt this will be enough to offset the $600 million out of GBTC.” Seyffart and other analysts noted that there may be inconsistencies in calculating the flow of money due to the accounting processes involved in stocks. GBTC has been a profitable investment vehicle for investors who borrowed money to enter the fund for several years and then profited from the Grayscale premium, which reached as much as 43 percent in July 2019, according to YCharts data. The arbitrage opportunity in GBTC ended when the premium turned into a discount in February 2021. Due to the minimum six-month lock-up period imposed on investors purchasing GBTC shares, many investors remained in the fund, unwilling to sell their shares.After GBTC was converted into a spot ETF, investors who had to keep their funds locked for a long time started to run away from the fund as the discount rate reached 1.55 percent. The estimated $1.17 billion outflow experienced by GBTC is worth approximately 27 thousand Bitcoins at the current price. According to X user CC15Capital, 35,761 BTC are held in nine other spot Bitcoin ETFs other than GBTC. Again, according to CC15Capital data, Grayscale has 605,891 Bitcoins, BlackRock has 11,439 and Fidelity has 9,750 Bitcoins. Yahoo Finance data compiled by Cointelegraph revealed that 10 recently approved spot Bitcoin ETFs reached $1.8 billion in volume on Jan. 16, with funds offered by Grayscale, BlackRock and Fidelity accounting for $1.6 billion of the total volume. On the other hand, according to Bloomberg ETF analyst Eric Balchunas, the total transaction volume of 500 ETFs launched in the USA last year was only $ 450 million on January 16.BlackRock iShares Bitcoin Trust was the clear leader, receiving more than $497 million in net inflows in the last three days. Total volume in new spot Bitcoin ETF products reached nearly $10 billion in the first three days of trading, according to figures from Bloomberg ETF analyst James Seyffart and Yahoo Finance data compiled by Cointelegraph. Grayscale Bitcoin ETF, on the other hand, maintained its leadership in total transaction volume by reaching a transaction volume of more than 5.1 billion dollars, but as investors reduced risk, there was a significant outflow from the fund. Grayscale Bitcoin Trust (GBTC) has witnessed a total outflow of more than $579 million since it began trading on January 11. Balchunas added that BlackRock's product will continue to receive the most inflows and is "likely to overtake GBTC as the liquidity king."GBTC was once a boon for investors who entered the fund by borrowing money and then profited from the Grayscale premium. The product was also used as an indicator for Bitcoin demand in the years when spot ETF products were not available. This arbitrage opportunity quickly resulted in huge losses when the premium suddenly turned into a discount. This situation has trapped many investors who do not want to sell their assets at a huge discount.BTC price is stuck in a range as concerns about the possibility of miners selling are offset by optimism from increased institutional investment.Bitcoin price remains stuck, reflecting uncertainty among market participants following the approval of spot Bitcoin ETFs last week. As of January 16, BTC price is stuck between $41,550 and $43,000. This stagnation continues despite a breakout attempt at the beginning of the month, when the cryptocurrency briefly rose above $49,000 but returned to the current range.After 11 companies, including BlackRock and Fidelity, approved spot BTC ETFs in the United States, the Bitcoin price rose above $49,000. However, the price has fallen by approximately 10 percent since then, fulfilling the scenario some analysts expected.Concerns continue to increase that miners will want to sell their coins faster due to the increasing hash rate in Bitcoin mining. Some investors think that the cost of mining Bitcoin will increase after the halving in April 2024, which will put pressure on the BTC price. Bitcoin miners recently transferred more than $1 billion worth of Bitcoin to crypto exchanges.Koreans buying, Americans selling It is clear that Bitcoin's recent sideways price movement occurred at the same time as South Korean purchases offset sales in the United States. The Kimchi Premium Index, an index that measures the Bitcoin price difference between South Korean and global cryptocurrency exchanges, shows that Bitcoin is traded at a 3-4 percent premium in South Korea.Koreans buying, Americans selling It is clear that Bitcoin's recent sideways price movement occurred at the same time as South Korean purchases offset sales in the United States. The Kimchi Premium Index, an index that measures the Bitcoin price difference between South Korean and global cryptocurrency exchanges, shows that Bitcoin is traded at a 3-4 percent premium in South Korea.