Core Scientific emerges from Chapter 11 bankruptcy

2024-01-17 00:40:05

Core Scientific is emerging from Chapter 11 bankruptcy and will relist its shares.

After a U.S. court confirmed its reorganization plan, mining company Core Scientific announced its readiness to exit bankruptcy proceedings.

Core Scientific CEO Adam Sullivan said the confirmation of the plan is a defining moment of the company.

“With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we ute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale.”

Adam Sullivan, Core Scientific CEO

The press release notes that under the reorganization plan, shareholders will receive approximately 60% of Core Scientific’s new share capital, and the company will fully repay its debt.

The mining firm also said it plans to relist on the Nasdaq exchange by the end of January 2024.

In November 2022, the company warned of a possible depletion of cash reserves and cash equivalents before the end of the year. The miner cited a decrease in the price of Bitcoin (BTC), an increase in electricity tariffs, and an increase in hash rate. Liquidity was also pressured by legal costs and the bankruptcy of Celsius Network, one of its largest hosting clients.

In December 2022, Core Scientific filed for Chapter 11 bankruptcy. However, Core Scientific did not intend to initiate a liquidation process after filing. The company expects to continue operations until an agreement is reached with its major creditors.

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