The 300% surge on Nasdaq was a surprise for many retail traders. CORZ is currently trading at $0.3388 per share.
It peaked at $0.53 and did not manage to hold on to the newly acquired support line, but it is still doing much better than during the weeks leading to this moment.
Just recently, Nasdaq issued a warning to BitFarms and said that it would be taken off the exchange if they failed to comply with Nasdaq’s rules.
The Canadian BitFarms had its stocks trading below $1 for 30 consecutive days and must have at least 10 consecutive days of trading above $1 before June 12, 2023.
What happened to Core Scientific
CORZ is another mining company that has been struggling to make ends meet. Bitcoin mining is not the most profitable enterprise at the moment due to BTC prices falling and energy prices increasing.
Natural gas prices also forced many utility providers to make it more expensive for end users to keep their lights on.
Core Scientific was preparing for bankruptcy and started gathering documents when help came from their investors, who were unaware of the company’s struggles.
Shareholders of the company were surprised to learn that the company was on the brink of collapse. The group of investors gave the company $72 million in non-cash financing with good terms.
This influx of funding should keep Core Scientific from going bankrupt and get through the crypto winter.
The situation in the mining sector is grim
With many countries rethinking their approach to working with miners, it is hard to find places where mining is profitable.
Regions with abundant renewables, hydro energy, and opportunities for generating power with solar panels allow miners to keep being profitable. Some manage to cut favorable deals with local authorities and utility companies.
On the other side of the spectrum, Kazakhstan, Texas (US), Germany, and even Peru are making adjustments to the amount of energy they can give to miners.
In many cases, this energy is insufficient or comes at a higher price than anticipated. Mining also pushes local power grids to their limits.