Bitcoin Miner Core Scientific Set to Emerge From Bankruptcy
Core Scientific has received the go-ahead from bankruptcy court for its reorganization, paving the way for the bitcoin mining giant to relist its shares on Nasdaq.
Core Scientific Set for a Major Turnaround
Core Scientific, Inc., a major bitcoin miner, is about to emerge from Chapter 11 bankruptcy. In a press release on their website, Core Scientific announced that the Southern District of Texas bankruptcy court has green-lighted its reorganization plans, setting the stage for the company to relist its shares on Nasdaq by the month’s end.
The company’s reorganization strategy involves full repayment of its existing debt, with current shareholders receiving approximately 60% of the new company’s equity.
Speaking about the recent approval of their plan, Adam Sullivan, CEO of Core Scientific, emphasized that the company is set to emerge stronger by the end of the month. He continued:
With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale.
The court’s approval followed Core Scientific’s successful closure of a $55 million equity rights offering earlier this month, one of the last steps in the miner’s restructuring journey. At the height of the 2021 bull market, Core Scientific was the largest publicly traded bitcoin miner by computing power, representing about 10% of computing power on the network. However, the plummeting bitcoin price, which dropped from over $60,000 to below $20,000, coupled with rising energy prices pushed the company into Chapter 11 on Dec. 21, 2022.
Now, as Core Scientific prepares to exit bankruptcy, the landscape appears more favorable. Bitcoin’s price has rebounded to above $40,000, spurred by investor interest following the SEC’s approval of spot bitcoin ETFs in the U.S.
Do you think Core Scientific will be able to remain solvent after emerging from bankruptcy? Share your thoughts and opinions about this subject in the comments section below.