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(Reuters) – Core Scientific Inc, one of the largest publicly traded crypto mining companies in the United States, will soon file for Chapter 11 bankruptcy, CNBC reported, citing a person familiar with the matter. .
The company will file for bankruptcy protection in Texas early Wednesday morning but will not be liquidated, the report released Tuesday evening said, adding that it will continue to operate as normal while reaching an agreement with major security holders.
The development comes after one of Core Scientific’s major creditors B. Riley Financial Inc offered $72 million last week to stave off bankruptcy for the bitcoin miner.
Core Scientific did not immediately respond to an after-hours request from Reuters for comment.
The Austin, Texas-based miner, which operates in Georgia, Kentucky, North Carolina and North Dakota, mines digital assets, including coins like bitcoin and ethereum.
Bitcoin miners have come under severe pressure as their profitability has plummeted amid falling cryptocurrency prices and soaring energy prices. The extreme market conditions also led to the bankruptcy of other major cryptocurrency lenders such as Celsius Network and Voyager Digital Ltd.
Core Scientific has also been impacted by litigation with Celsius Networks LLC and its subsidiaries.
(Reporting by Siddharth Jindal and Maria Ponnezhath in Bengaluru; Editing by Uttaresh.V)
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