Claim $500Breaking: Crypto Twitter Reacts To Core Scientific Filing For Chapter 11 Bankruptcy
Core Scientific is filing for Chapter 11 bankruptcy protection in Texas on Wednesday, December 21. It is one of the largest publicly listed crypto mining companies in the U.S. Core Scientific has decided to file for bankruptcy due to falling crypto prices and rising energy prices that deteriorated its finances.
Despite the $72 million in financing from its lender B. Riley last week to avoid bankruptcy, the crypto miner was unable to work efficiently and will work on restructuring, reported CNBC. Core Scientific plans to keep mining until it restructures its balance sheet.
Core Scientific’s market cap dropped to $78 million on Tuesday, down from a $4.3 billion valuation in July 2021 when it went public. The CORZ stock price has fallen more than 98% in the last year. On Tuesday, the stock price ended at $0.21, up 3.07%.
According to a person familiar with the company’s situation, the company is still generating positive cash flow. However, cash is insufficient to repay the financing debt owed on mining equipment it was leasing. Core Scientific will not liquidate and operate normally until reaching a deal with senior security noteholders, which hold the majority of the company’s debt.
Crypto Twitter Reactions To Core Scientific Bankruptcy
Crypto influencers took to Twitter to report Core Scientific’s bankruptcy filing. Many crypto miners are facing financial constraints amid the bear market.
Crypto researcher Dylan Leclair reported that the firm owns approximately 5% of the global hash rate. He also shared the situation of listed crypto miners with many having stock prices down over 90% in 2022.
Crypto investor and board member at Iris Energy Mike Alfred said Core Scientific had told him that the company would have 13 EH by July of this year when he first looked at the company in the summer of 2021.
Many people showed concerns over the future of bitcoin mining as several crypto miners such as Argo Blockchain and Iris Energy are facing bankruptcy risks.
Also Read: Bitcoin Price Prediction for 2023
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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Trump-Linked USD1 Stablecoin Crosses $3B Market Cap After Binance Rolls Out 20% Yield
- Crypto India: Billionaire Nikhil Kamath Reveals He Holds Zero Bitcoin, Plans to Explore BTC in 2026
- Spot Bitcoin ETFs Bleed $175M as Analysts Predict BTC Price Crash to $40K
- Dormant Bitcoin Whale Awakens with $30M Profit
- Bitcoin, AI Coins Bounce as Nvidia Signs $20B AI Inference Deal with Groq
- Bitcoin Price on Edge as $24B Options Expire on Boxing Day — Is $80K About to Crack?
- Crypto Market Rebounds: Are Bulls Positioning for a Santa Rally?
- XRP, Bitcoin, Ethereum Price Predictions Ahead of Jan 2026 CLARITY Act and US Crypto Reserve Plans
- Pi Network Analysis: Pi Coin Price Surges on Christmas Eve, Can It Hit Year-End Highs?
- Why Dec 26th Is A Do Or Die for Bitcoin Price Ahead Of Record Options Expiry?
- Why Bitcoin, Ethereum And XRP Prices Are Down Today? (24 Dec)
