Core Scientific – one of the world’s largest bitcoin miner, just filed for bankruptcy protection with debts of between $1 to $10 billion!
Major Bitcoin Miner Core Scientific Files For Bankruptcy!
One of the world’s largest bitcoin miner, Core Scientific (NASDAQ:CORZ), just became the first publicly-listed cryptocurrency mining company to file for bankruptcy protection.
On Wednesday, December 21, 2022, Core Scientific filed for Chapter 11 bankruptcy protection at the Southern District of Texas, with estimated liabilities of between $1 to $10 billion, to around 1,000 to 5,000 creditors.
Core Scientific appears to have reached an agreement with some of its creditors before filing for Chapter 11, in what appears to be a prepackaged bankruptcy. It expects some support from its convertible potholders in the form of two debtor-in-possession (DIP) facilities worth up to $75 million.
This is enough extra cash to get us through the Ch 11 process while we continue to operate as usual and when we come out of the Chapter 11 process, we will be fully solvent with no liquidity issues.
We’ll come out of Chapter 11 with a much, much smaller amount of debt on our company. So we should be close to debt free.
– Core Scientific Chief Mining Officer, Russell Cann
Core Scientific Plans To Sell Mining Facilities Under Development
Core Scientific operates around 243,000 mining rigs, which account for about 10% of computing power on the Bitcoin network.
- 143,000 of its own mining rigs, with 14.4 exahash per second (EH/s) capacity
- 100,000 of hosted mining rigs for other companies, with 10 EH/s capacity
Core Scientific will continue to mine Bitcoin during its bankruptcy process, but is exploring the sale of up to one gigawatt worth of mining facilities that are under development for launch in 2023.
The likelihood of us selling assets that we currently are operating at is close to zero. The likelihood of us selling assets that are under development where we have power capacity and land and substations is high.
– Core Scientific Chief Mining Officer, Russell Cann
Core Scientific currently operates mining facilities with 850 megawatts of computing capacity.
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