US Crypto Miner Core Scientific Files for Chapter 11 Bankruptcy and Continues Mining Bitcoin

[ad_1]

Core Scientific, one of the largest publicly traded crypto mining companies in the United States, listed on Nasdaq as $CORZ, filed for Chapter 11 bankruptcy protection on Wednesday morning in the United States. State of Texas, according to CNBC.

See related article: Will the true value of Bitcoins prevail in 2023?

Fast facts

Core Scientific is still generating positive cash flow, but it’s not enough to pay off equipment lease financing debt, an unnamed person familiar with the company’s finances told CNBC.

Instead of liquidating, the company will continue with regular mining operations while trying to strike a deal with senior security holders, who hold most of the company’s debt, according to the unnamed source.

Core Scientific specializes in mining proof-of-work cryptocurrencies, primarily Bitcoin, which requires expensive equipment and an abundant and constant source of energy.

The company owns around 5% of the global Bitcoin hash rate, according to data from Hashrate Index.

Bitcoin, the largest cryptocurrency in the world, is currently down around 75% from its all-time high of US$69 in November 2021, trading at US$16,881 as of 6:45 p.m. HK.

The loss of value of Bitcoins and the rise in energy prices have reduced the profit margins of BTC miners around the world.

See Related Article: Bitcoin Mining Difficulty Drops Over 7% as Lack of Liquidity Hits Miners

[ad_2]