Bitcoin wrestles with $40,000 as it tries to recover recent losses: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Core Scientific CEO Adam Sullivan discusses the company’s reorganization and re-listing of shares on the Nasdaq.

Chapters:
00:00 – CNBC Crypto World, Jan 24, 2024
0:26 – Bitcoin rebounds
1:41 – The headlines
3:44 – Core Scientific CEO

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Bitcoin wrestles with $40,000 as it tries to recover recent losses: CNBC Crypto World

Today Bitcoin rebounds to the $40,000 Mark a Colorado Pastor faces civil fraud charges for the crypto token he says God told him to launch and Adam Sullivan the CEO of core scientific discusses the crypto Miner strategy as it exits bankruptcy and relist shares on the NASDAQ welcome to cnbc’s crypto world

I’m TAA mck digital currencies recovering this morning after selling pressure pushed Bitcoin below $39,000 Yesterday by noon Eastern today that cryptocurrency was back above the $40,000 Mark ether also on the rise trading at 22.40 and polygon’s mtic token climbed to 74 cents now Cathy wood over at Arvest spoke with cnbc’s closing

Bell overtime about the recent crypto selloff and what might be driving it there was speculation beforehand will this be a sell on the news uh we said yes and then we were hearing that so much that we thought well maybe not well it turns out that uh FTX is uh I guess

It’s nearly a billion dollars in gbtc uh has been sold as this uh Bitcoin uh as the Bitcoin ETF has come out and uh I think that’s been part of the pressure I do think there sell on the news because I thought I think some

People expected it to hold uh a a little more than it has uh but this has not Disturbed our point of view at all we think this is one of the most important Investments uh of our lifetimes this is uh this is a global rules-based monetary system okay let’s talk about the top

Stories Colorado pastor and his wife are facing civil fraud charges after allegedly stealing more than a million dollars in a crypto fraud scheme which he says the Lord told him to launch according to the Colorado Division of Securities Eli and Caitlyn regalato ran indx coin and claimed that God told told

Him that people would become wealthy if they invested the agency alleges indx coin raised about $3.2 million but that 1.3 million of that went to the regalad themselves the pair couldn’t be reached for comment by NBC news but in a now private video statement Eli said that it

Was true that they pocketed the million dollars he said that some went to the IRS and some went to a home remodel that he claims the Lord told them to do he went on to say quote we took God at his word and sold a cryptocurrency with no

Clear exit and that he asked the Lord where the liquidity would come from and was told trust me next crypto lender nexo is suing Bulgaria for billions in Damages over the country’s criminal investigation into the company Bulgaria launched a probe into nexo back at the start of 2023 claiming in part that its

Founders participated in organized crime that investigation came to an end in December when the country’s Regulators found no wrongdoing in a statement released this morning nexo said it was seeking more than $3 billion in Damages for the investigation it claims its brand and reputation were damaged lucrative business was lost and was

Considering an IPO in the us at the time of the investigation which then fell apart we reached out to the prosecutor’s office mentioned in the statement but haven’t heard back nexo also faced legal action here in the US last year when it paid a $45 million penalty to the SEC

For failing to register its crypto lending product with the agency all right turning to core scientific for our main story just over a year after filing for bankruptcy the crypto minor has completed the reorganization process as part of that the company is relisting shares on the NASDAQ cnbc’s McKenzie Seagal is caught

Up with the CEO of core scientific to find out what’s ahead for the minor especially before the having in just a few months okay so let’s start by talking about the future of core scientific your company is returning to the NASDAQ and before filing for bankruptcy you guys

Were one of the biggest Bitcoin miners out there but you’re re-entering the public market at a time when names like clean spark Riot and Marathon digital are trading much higher they’ve also captured market share is this sort of a rising tide lifts All Ships kind of moment or are you looking to capture

Market share back while you work to pay off debt yeah I think the future for core scientific looks strong today I mean a good stat to go back to is the fact that core scientific even through our our reorganization process LED all publicly traded mining companies a

Number of Bitcoin Min in 2023 but this goes to our our pragmatic and cost- effective growth strategy going forward we’ll be increasing our infrastructure over the course of the next 3 years by over 50% we’re continuing to install new miners over the course of the first half

Of this year uh to increase our ex ahash and increase our efficiency and we’re coming out of this with a a much stronger balance sheet you know we’re putting additional cash on balance sheet and also we have a capital structure that’s allowing for uh opportunities to delever our balance sheet even further

So from our perspective the future for core scientific looks very bright right so you just went through that 13-month bankruptcy process what else is changing about about your business model that investors should know about you know our business model is continuing to evolve you know something

That we’ve looked at over the course of 2023 you know to go back we were a market leader across a number of different areas you know whether it’s infrastructure whether it’s bitcoin’s mind but for us it’s not about just being the biggest anymore or or one of

The biggest it’s about being the most efficient and the most productive and so we’re continuing to evolve and we’re going to be driving additional shareholder value via all of the initiatives that we’re working on today so you’ve to slash around $400 million in debt it’s still a multi-year plan to

Deal with paying the rest of it back what does that look like yeah so the nice part about the capital structure that we have is we have very limited debt maturity over the course of the first three years and there’s optionality embeded in that capital structure that provides us with

Opportunities such as a mandatory convertible note that represents uh nearly 50% of our outstanding debt at emergence so from our perspective it’s it’s the convertible notes it’s also warrants that are provided to existing Equity holders um both areas are opportunities for us to delever uh based on market performance or the stock

Performing well over the course of the next few years okay so a couple imminent headwinds including the recent price drop in Bitcoin after all the spot ETF exuberance wore off as well as the having coming up this April it could be a make or break moment for many in the

Industry as Revenue gets cut in half overnight how are you thinking about the market backdrop right now and and what that means for core and the mining sector more broadly yeah any short-term price volatility is something that we’ve we’ve weathered before you know you can expect a market cycle in Bitcoin nearly every

Single year so the short-term price volatility especially around some of the more recent announcements uh like the ETFs you know those don’t really change our business plan at all now as we think about the having it’s something that we we as a company have been through in an

Institutional scale Pro uh previously so looking forward we’re really mainly focused on how do we improve our operations how do we improve our energy and how do we improve our software stack you know we have all three of those items in Spades and that’s something that will be the thing that carries us

And is unique to core scientific as we approach this upcoming Heaven yeah there’s a whole startup ecosystem popping up on top of Bitcoin which could be great for miners in terms of generating additional fees any thoughts on this or any other trends that you’re seeing on this front yeah miners

Obviously love additional fees on the network but from our perspective we want the network to continue to grow and I think what we’re seeing today uh as you noted we’re seeing more applications being used on top of the Bitcoin Network that’s a positive for for not only the

Network today but also the long-term Health especially as we see folks like Black Rock and other uh large financial institutions who are now generating Revenue via ETFs and other mechanisms will be investing in the future of the Bitcoin Network and that’s going to drive additional transactions as well

You mentioned spot ETFs which were just approved by the SEC a few weeks ago it cemented Bitcoin coin’s place as an asset class it’s here to stay but since then it’s really been a sell the news event do you have any final thoughts on the state of the industry and the

Evolution of the Bitcoin network from here every single year since Bitcoin was created adoption as awareness has in has increased so large institutions coming into this Market is only going to drive additional adoption and when you have Pension funds investing in this industry as well you’re going to see a much

Different growth trajectory for the Bitcoin Network and that’s what really we’re most excited about today okay that’s all for crypto world today we’ll be back again tomorrow and we’ll see you then