Listed Cryptocurrency Miner Core Scientific submitted for Chapter 11 bankruptcy protection in the Southern District of Texas Bankruptcy Court on Dec. 21.
According to court documents, miners have debts of between $1 billion and $10 billion. With over 1,000 creditors, his largest unsecured debt is with B. Riley Financial, a bankrupt company that owes him $42.36 million to investment banks. increase.
Other creditors include Dalton Utilities, Shell Energy, U.S. Customs and Border Protection, Kentucky Department of Revenue and others.
Core Scientific cash flow is positive
December 20, CNBC report Core Scientific was still generating positive cash flow. However, the funds are not enough to cover the debt owed to the mining equipment.
In the meantime, the company will continue to operate while negotiating deals with senior security holders who hold the majority of the debt.
Core Scientific is one of the cryptocurrency miners to go public in 2021 during the SPAC boom. The company was valued at $4.3 billion at its peak, but has since tumbled to $78 million, a 98% fall in its share price year-to-date.
Minor had hinted at the possibility of filing for bankruptcy in October. At the time, it warned that common stock holders could lose their investments entirely if the industry did not recover. At the time, Core Scientific said:
“The long-term decline in Bitcoin prices and rising electricity prices have severely impacted our financial performance and liquidity.”
Another problem for Core Scientific is its customer, Celsius. Celsius’ bankruptcy impacted Minor’s balance sheet and may have exacerbated liquidity problems.
Core Scientific Stock Performance
Yahoo Finance data despite filing for bankruptcy Indicated Core Scientific shares were up 3% at the close of trading on December 20.
Core Scientific’s share price soared nearly 200% at the start of the month after receiving the loan, according to reports. suggestion from creditors.
miners facing bankruptcy
Core Scientific joins the list of cryptocurrency miners who have surrendered during the current bear market. In September, Compute North filed for bankruptcy.
On December 20th, another miner, Greenidge Generation, entered into a non-binding debt restructuring agreement with NYDIG. SEC filings also revealed that Greenidge’s board had considered the possibility of filing for voluntary bankruptcy.
