Core Scientific may sell some crypto mining sites in the wake of bankruptcy

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Core Scientific Inc (NASDAQ:CORZ), the bitcoin (BTC-USD) miner that filed for bankruptcy protection earlier on Wednesday, is reportedly considering selling up to one gigawatt of its mining facilities under development.

“The likelihood of us selling assets that we are currently trading on is close to zero,” Russell Cann, senior mining manager, told The Block. “The likelihood of us selling assets under development where we have power capacity, land and substations is high.”

Additionally, the sites that could be sold are those slated to launch in 2023, Cann added, while noting that the company currently operates up to 850 megawatts of electricity, making it one of the largest generators. of bitcoin (BTC-USD).

In response to Core’s (CORZ) previously announced $75 million debtor-in-possession financing offer from its convertible noteholders, Cann said “this is enough additional money to allow us to move through the Ch 11 process while we continue to operate as usual and when we exit the Ch 11 process we will be fully solvent with no liquidity issues,” as quoted by The Block.

As part of its restructuring process, Core is seeking to convert most of its debt into equity. “We’ll come out of Chapter 11 with a much, much lower amount of debt on our business. So we should be nearly debt-free,” Cann argued.

CORZ extended early trade losses, now down about 50% to $0.10 per share from $0.16 at the opening bell.

Earlier (November 22), Seeking Alpha contributor IncomeBent Investments flagged Core Scientific as “a company breathing its last breath before bankruptcy.”

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