Shedding the Shadow of Bankruptcy: Core Scientific’s Restructuring Plan Approved, Set to Relist on NASDAQ by the End of January
As one of the largest publicly traded cryptocurrency mining companies in the United States, Core Scientific has announced a restructuring plan that has been approved by the U.S. Bankruptcy Court after more than 13 months. The bankruptcy is expected to conclude on January 23rd, and the company will relist on the NASDAQ stock exchange the following day under the symbol “CORZ”.
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Core Scientific emerges from bankruptcy proceedings
Core Scientific’s goal: $1 billion in revenue by 2027
Cryptocurrency mining company Core Scientific announced in a tweet early this morning that the Southern District of Texas Bankruptcy Court has confirmed and approved the company’s proposed restructuring plan.
Official statement
The statement shows that the company will fully repay existing financing debt of up to $1 billion, and existing shareholders will receive warrants for approximately 60% ownership of the new company on January 23rd. The company has also retained over 240 job opportunities.
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At the same time, Core Scientific will relist on the NASDAQ the following day under the symbol “CORZ”.
A few days ago, the company also
revealed
that it had completed a $55 million Equity Rights Offering (ERO), which is seen as one of the final steps in the mining company’s restructuring process:
Core Scientific has reached a preliminary agreement on settlement terms with all key stakeholders.
Bankruptcy Judge Christopher Lopez expressed satisfaction with this plan during a hearing, stating that it provides significant funding for unsecured creditors and shareholders.
After undergoing a 13-month restructuring process, Core Scientific CEO Adam Sullivan also commented:
With the continued demand for Bitcoin and high-capacity computing, we look forward to delivering value to shareholders through executing our growth plan, deleveraging our balance sheet, and scaling our operations.
He added, “We are poised to become a stronger company by the end of this month.”
Previously, during the peak of the bull market in 2021, Core Scientific was one of the world’s highest hash rate publicly traded Bitcoin mining companies,
operating
143,000 mining machines.
However, in December 2022, Core Scientific faced operational challenges due to the sluggish crypto market, rising energy prices, and increased mining difficulty. At that time, the company applied for bankruptcy protection and claimed it would not liquidate but continue operations to gradually repay lease and financing debt.
It is understood that Core Scientific
operates
around 209,000 self-owned and hosted Bitcoin mining machines in 2023, producing a total of 13,762 Bitcoins and achieving a total hashrate of 23.2 EH/s that year.
Now, with the cryptocurrency market rebounding, the company has successfully emerged from bankruptcy and has announced through reports that it aims to increase its number of mining machines to 1.1 million by 2027, with a revenue target of $1 billion in the same year.
On the other hand, Bitcoin mining company Compute North, which also applied for bankruptcy protection in 2022 due to the bear market, has no further updates.
Compute North
Core Scientific
cryptocurrency mining
mining company
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