As one of the largest publicly traded cryptocurrency mining companies in the United States, Core Scientific has announced a restructuring plan that lasted over 13 months, which was approved by the US Bankruptcy Court yesterday (16). It is expected to end bankruptcy on January 23 and relist on the Nasdaq with the stock code “CORZ” the next day.
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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 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 debts of up to $1 billion, and existing shareholders will receive warrants for approximately 60% equity in the new company on January 23. The company has also retained over 240 job opportunities.
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At the same time, Core Scientific will relist on Nasdaq the following day with the stock code “CORZ.”
A few days ago, the company also disclosed the completion of a $55 million equity rights offering (ERO), which is considered one of the final steps for the mining company to complete the restructuring:
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 repayment for unsecured creditors and shareholders.
After undergoing a 13-month restructuring process, Core Scientific CEO Adam Sullivan also commented:
With the continued increase in demand for Bitcoin and high-capacity computing, we look forward to creating value for shareholders through the implementation of growth plans, deleveraging the balance sheet, and improving efficiency in scale.
He added, “We are ready to become a stronger company by the end of this month.”
Previously, during the peak of the bull market in 2021, Core Scientific was considered one of the world’s highest computing power publicly traded Bitcoin mining companies,
operating 143,000 mining machines.
However, in December 2022, Core Scientific faced operational crisis due to factors such as the sluggish cryptocurrency market, rising energy prices, and increased mining difficulty. At that time, the company applied for bankruptcy protection and claimed that it would not liquidate but continue operations to gradually repay lease and financing debts.
It is understood that Core Scientific operated approximately 209,000 self-owned and hosted Bitcoin mining machines in 2023, producing a total of 13,762 Bitcoins that year, with a total hashrate of 23.2 EH/s.
Now, with the cryptocurrency market rebounding, the company has successfully emerged from bankruptcy and has announced in its report that it plans 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, Compute North, another Bitcoin mining company that applied for bankruptcy protection in 2022 during the bear market, has no further updates.
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