Core Scientific Set for a Major Turnaround
Core Scientific, Inc., a major #bitcoin miner, is about to emerge from Chapter 11 bankruptcy. In a press release on their website, Core Scientific announced that the Southern District of Texas bankruptcy court has green-lighted its reorganization plans, setting the stage for the company to relist its shares on Nasdaq by the monthâs end.
The companyâs reorganization strategy involves full repayment of its existing debt, with current shareholders receiving approximately 60% of the new companyâs equity.
Speaking about the recent approval of their plan, Adam Sullivan, CEO of Core Scientific, emphasized that the company is set to emerge stronger by the end of the month. He continued:
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.
The courtâs approval followed Core Scientificâs successful closure of a $55 million equity rights offering earlier this month, one of the last steps in the minerâs restructuring journey. At the height of the 2021 bull market, Core Scientific was the largest publicly traded bitcoin miner by computing power, representing about 10% of computing power on the network. However, the plummeting bitcoin price, which dropped from over $60,000 to below $20,000, coupled with rising energy prices pushed the company into Chapter 11 on Dec. 21, 2022.
Now, as Core Scientific prepares to exit bankruptcy, the landscape appears more favorable. Bitcoinâs price has rebounded to above $40,000, spurred by investor interest following the SECâs approval of spot bitcoin #ETFs. in the U.S.