Bitmain Sold Half of Its Stake in Core Scientific Amid 2024 Stock Rally

Bitmain appears to have taken profits from its stake in Core Scientific, selling nearly 50% of its holdings in the mining giant in 2024.

According to Bitmain’s Schedule 13G filings, the Chinese Bitcoin mining and hardware manufacturing powerhouse began 2024 holding 10.7 million shares of Core Scientific. Recent disclosures, however, reveal that its stake has dropped to 5.36 million shares as of December 31.

It remains unclear when Bitmain liquidated the position, but the sale coincided with Core Scientific’s stock rally in 2024, driven by the company’s pivot toward high-performance computing hosting and AI-focused services.

Core’s strategy shift, combined with improved financial performance after exiting bankruptcy protection, attracted strong investor interest and fueled significant stock gains, particularly in the second half of the year.

Bitmain initially acquired its shares as part of Core Scientific’s bankruptcy proceedings in late 2022. Rather than receiving full cash payment for its supply of S19XP miners, Bitmain accepted 10.7 million shares of Core Scientific, valued at $59 million at the time.

The transaction positioned Bitmain as a significant investor, holding a 5.5% stake following Core’s bankruptcy restructuring. With its recent sale, Bitmain’s stake has dropped to 1.9%, but it remains valued at $64 million, based on Core’s closing price on Wednesday.

Core Scientific relisted on the Nasdaq in January 2024 after emerging from bankruptcy protection. Its stock surged throughout the year, reaching a 52-week high of $18.63 in November. Bitmain’s original $59 million S19XP order could have been worth as much as $200 million at the peak.