MEXCBitcoin Mining Giant Core Scientific Files for Chapter 11 Bankruptcy
Core Scientific, the world’s largest publicly-traded crypto miner based out of the United States is ultimately filing for Chapter 11 bankruptcy in Texas on Wednesday morning.
Core Scientific joins the list of other crypto miners who have succumbed to the crash in the crypto space and the soaring energy prices. A month ago, the Bitcoin miner had already hinted about extreme pain in its operations and cash crunch owing to the market conditions.
Core Scientific was mining some proof-of-work digital assets such as Bitcoin. As we know, this requires high-end machinery and hardware while also consuming massive electricity in the process. Over the last year, the price of Core Scientific (NASDAQ: CORZ) stock has tanked by 99% losing more than $4 billion in valuations.
Last year in July 2021, the Bitcoin miner had gone for a public listing via a special purpose acquisition vehicle or SPAC. Although the company still generates a positive cash flow, it’s not enough to repay the financial debt on equipment, said sources familiar with the matter.
Core Scientific’s Further Action Plan
The sources also added that core Scientific is not willing to liquidate, however, it would continue to operate normally while reaching a deal with senior security noteholders, who hold a majority of the company’s debt.
In their filing earlier in October, Core Scientific said that holders of their common stock might suffer a total loss on their investment. However, the Bitcoin miner’s deal with its convertible note holders is such that if the market conditions for Bitcoin improve, common equity holders might not get totally wiped out.
Core Scientific has operations currently in North Dakota, North Carolina, Georgia, and Kentucky. It is also one of the largest providers of blockchain infrastructure and hosting.
Core Scientific is not the only Bitcoin miner to face bankruptcy. Compute North, the hosting infrastructure for crypto mining also filed for bankruptcy in September.
- Solana Foundation Manager Vibhu Challenges Ripple Execs To Public “Facts-Only” XRP Debate
- Teucrium Files for Flare Network ETF as XRP Minting For FXRP Tops $120M
- Waller Signals December Fed Rate Cut Despite Powell’s “No More Cuts” Stance
- BitMine Buys $29 Million in Ethereum as Kalshi Traders Cut $5,000 Price Odds to 34%
- Bitwise XRP ETF Moves Closer to Launch as Firm Submits Final S-1 Filing
- Pi Coin Price Prediction After AI Investment Announcement – Is a Bull Run Ahead?
- How High Can Zcash Price Go In November?
- SOL ETFs Records $44.4M in 4 Days: What’s Next For Solana Price?
- Why Is TAO Price Skyrocketing Today?
- After 1,993% Burn Spike, Is Shiba Inu Price Set for a Major Trend Reversal?
- Pepe Coin Price Forms Multi-Year H&S Pattern as Whale Selling Intensifies
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
