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- Core Scientific, a cryptocurrency mining firm, has experienced loss in the value of its shares amid the currency downtrend in the market.
- Cryptocurrency sector is going through a heavy bloodbath currently, where it has shed more than trillion dollars from its market cap.
- Core Scientific, based in Austin, got its approval for power purchase agreement and lease back in August 2021 by the City Councilof Denton.
Core Scientific Shares Slipping Down The Hill
Cryptocurrency mining organization, Core Scientific, which is developing another phase of iots Denton City data center, has witnessed a major fall in its shares amid the ongoing crypto market havoc, touching the price levels of $2 just previous week.
As per a data provided by market watchdog, share value of Core Scientific has plunged 78% in a year.
The news is heartbreaking for the city as the organization was anticipated to contribute to the city’s economy, bringing in $8 Million net revenue to Denton Municipal Electric and $8 Million to $10 Million to the town’s general fund every year for the upcoming 7 years.
A majority of income will be generated from Core Scientific’s 31 acre lease near DME’s Denton Energy Center, and the rest will be from selling the organization’s electricity the mine functions on.
Initial phase phase operating at 22 MegaWatts of electricity is anticipated to draw 300 megawatts by the year end. But this is only possible if everything goes according to the plan.
Backing out by the organization will mean shattering people’s hope for the anticipated funds.
How Is This Crypto Havoc Affecting Others?
The crypto havoc continues to this date, which started with the collapse of TerraUSD. The fall of stablecoin was so brutal that it started a downtrend, which eventually got bigger due to the contribution of other factors such as panic sellers selling off the assets.
Recently, Celsius Network made an announcement that it will put a halt on its transfers, withdrawals and swaps because of extreme market conditions. The organization locked up $12 Billion in digital assets under management due to solvency issues of the platform.
Not just this, many organizations have started to cut off jobs due to the crypto market havoc. Among these organizations is BlockFi. The organization grew its personnel by over 500%, from 150 employees to 800 back in 2020.
But FTX founder and crypto billionaire has shifted his organization’s gear in the opposite direction, stating that they will not stop hiring among this crypto bloodbath.
It is really foggy out there for the crypto sector, and many think that crypto winter will be here soon. But as we know that there is always uncertainty in the market, who knows if the market will rebound to remove these dark clouds to put happiness on the frowned faces of the investors, well we can’t say for sure, it is all just a matter of time.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
