Bitcoin Miner Core Scientific To Exit Bankruptcy By January 2024
Core Scientific, one of the largest Bitcoin (BTC) miners in the United States, will emerge from bankruptcy proceedings next month.
According to the December 21 announcement, the company has reached a master agreement with shareholders to issue convertible notes and shares until mid-January 2024 and to list them on the NASDAQ exchange thereafter. The company's CEO, Adam Sullivan, expressed his eagerness to return to the company, “to reverse our balance sheet and plan for continued growth in 2024 and beyond.”
Under the deal, Core Scientific shareholders will receive new shares at a 25:1 ratio to give $1.08 per share in the pre-exchange. Meanwhile, noteholders will receive $1.628 per $1 of face value for notes due in April and $1.201 per $1 of face value for notes due in August.
In July 2021, Core Scientific announced a $4.3 billion special purpose acquisition company (SPAC) deal. At that time, Core Scientific stock was valued at $10. Shortly thereafter, a combination of the crypto winter, rising energy prices, mining woes, and bad debt owed to the cryptocurrency Celsius led Core Scientific to file for bankruptcy in December 2022.
Cointelegraph previously reported that Core Scientific will inherit $709 million in net debt and $791 million in shareholders' equity if the plan is implemented in January. In the year By 2025, the debt will grow by only $46 million. While the company is in bankruptcy, it has signed a $77 million cash and stock deal with Bitcoin application-specific integrated circuit (ASIC) manufacturer Bitmain for 27,000 miners. The organization currently holds over 199,000 ASICs and mines around 32 Bitcoins per day.
Related: Marathon Prepares to Halve Bitcoin, Buys Two Mining Sites for $179M
