Bitcoin Miner Core Scientific Gets Restructuring Approval, Re-Listing in Sight

<p dir="ltr">Core Scientific, a Bitcoin miner that took a massive hit with previously falling crypto prices, received approval for Chapter 11 restructuring from a US bankruptcy judge. Following this decision, the company is expected to re-list its shares on Nasdaq by the end of January.</p><p dir="ltr">Restructuring of Core Scientific</p><p dir="ltr">The decision yesterday (Tuesday) allowed the Bitcoin miner company to cut its debt by $400 million and preserve 240 jobs. The judge highlighted that the process “provides a tremendous recovery for both unsecured creditors and also equity holders.”</p><p dir="ltr">Under the restructuring terms, the company’s existing shareholders will receive 60 percent of the new equity in common stock and warrants. The approval of the restructuring followed the closure of a proposed $55 million equity rights offering earlier this month.</p><blockquote><p lang="en" dir="ltr">The Bankruptcy Court has confirmed our Chapter 11 plan of reorganization. The Bankruptcy Court's approval of our plan clears the way for Core Scientific to emerge and re-list on Nasdaq by the end of January 2024!Read the full press release here: <a href="https://t.co/9pvy6hKOrP">https://t.co/9pvy6hKOrP</a> <a href="https://t.co/3rnKjG1TBv">pic.twitter.com/3rnKjG1TBv</a></p>— Core Scientific (@Core_Scientific) <a href="https://twitter.com/Core_Scientific/status/1747343096428323215?ref_src=twsrc%5Etfw">January 16, 2024</a></blockquote><p dir="ltr">A Victim of Last Year’s Crypto Collapse</p><p dir="ltr">Core Scientific <a href="https://www.financemagnates.com/cryptocurrency/us-bitcoin-miner-core-scientific-files-chapter-11-plan/">filed for Chapter 11 bankruptcy protection</a> last year when the crypto miners were struggling with the falling prices of Bitcoin. It was additionally one of the few publicly listed Bitcoin miners.</p><p dir="ltr">The bankruptcy of Core Scientific was further pushed by the fall of <a href="https://www.financemagnates.com/cryptocurrency/celsius-network-obtains-us-bankruptcy-court-approval-for-restructuring/">Celsius</a>, its biggest customer that also filed for bankruptcy. It failed to pay a $7 million energy bill for its mining activities.</p><p dir="ltr">“Today’s plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success,” said Adam Sullivan, the CEO at Core Scientific.</p><p dir="ltr">“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.”</p><blockquote><p lang="en" dir="ltr">Core Scientific's December and Full Year 2023 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> Production and Operations Update is out!- Produced 1,177 self-mined bitcoin and an estimated 449 bitcoin from colocated miners in December- Produced a total of 13,762 self-mined bitcoin and an estimated 5,512 bitcoin… <a href="https://t.co/Sr0Acvgb7J">pic.twitter.com/Sr0Acvgb7J</a></p>— Core Scientific (@Core_Scientific) <a href="https://twitter.com/Core_Scientific/status/1743279303549129012?ref_src=twsrc%5Etfw">January 5, 2024</a></blockquote><p dir="ltr">The bankruptcy court’s decision came when the crypto market witnessed bullish sentiments. The US securities market regulator recently <a href="https://www.financemagnates.com/cryptocurrency/sec-approves-11-bitcoin-etfs-listing-and-trading-will-start-today/">approved 11 Bitcoin exchange-traded funds</a>, resulting in the listing of them on stock exchanges. Although Bitcoin still remains highly volatile, it is now trading at around $42,700 as of press time, compared to about $16,000 a year ago.</p>

This article was written by Arnab Shome at www.financemagnates.com.