Core Scientific explains latest bankruptcy plan ahead of court date
Bitcoin (BTC) miner Core Scientific has released a statement outlining its plans to exit bankruptcy in early January 2024. The presentation is based on the third amended joint Chapter 11 plan filed on November 16 and includes an audio commentary by CEO Adam Sullivan.
Common stockholders and holders of two series of convertible notes are listed separately. Common shareholders will receive new shares in exchange at a ratio of 25:1 to give $1.08 per share in the pre-exchange.
Noteholders will receive $1.628 of face value for each $1 of face value for notes due in April and $1.201 of face value for notes due in August. Those payments will be made on January 3, 2024.
Subject to an agreement with major shareholders, Core Scientific will emerge from bankruptcy on January 5, 2024, with net debt of $709 million and equity value of $791 million. By 2025, only $46 million in debt will mature.
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Core Scientific operates seven facilities in five regions and has a total generating capacity of 724 MW. In fiscal year 2027, it has seen its revenue increase from $583 million in 2024 to $968 million in 2027 by adding 372 MW of capacity.
Today's $CORZ daily self-mining #Bitcoin last reported 24-hour period (02-Dec-2023): 30.1 pic.twitter.com/KuKyORAkka
— Core Scientific (@Core_Scientific) December 3, 2023
Core Scientific filed for bankruptcy at the end of December 2022. Low revenue and low bitcoin prices were blamed for the company's failure. A week ago from B. Riley Financial Services Forum rejected the offer of guarantees.
Shareholders can vote on the plan until Dec. 13, and the Bankruptcy Court for the Southern District of Texas will rule on the plan on Dec. 22. If approved, the plan will take effect on January 5, 2024.
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