Stock price for troubled Bitcoin miner Core Scientific surges 200%
Bitcoin (BTC) miner Core Scientific’s stock has soared nearly 200% in the past four days, following the positive reception for a Dec. 14 financing proposal from a current creditor who is hoping the firm can avoid bankruptcy.
Shares for the embattled miner were sitting just over 13 cents on Dec. 12, before climbing to nearly 40 cents as the market closed on Dec. 15 — representing a gain of 198%.
According to financial media firm Marketbeat, traders acquired 6,572 call options on Dec. 15, 136% more than the average volume of 2,780, which indicates that many are bullish on the stock and are betting that the price will continue rising.
Some members of the Bitcoin community were also acquiring shares, in the hope that scooping up shares at current prices could deliver a huge return if the financing plan goes through and the firm can survive through the bear market.
Bought a slug of $CORZ at the close. If the financing goes through and they can survive through the bear market, this trade could become an absolute MONSTER. DYOR. For your reference: pic.twitter.com/eHF4NXjcvH
The rally could be the start of a turnaround, or just a dead cat bounce. Core Scientific was hit with a run of bad news throughout 2022 and despite recent gains the price is still 95% lower than it was at the start of the year.
On Dec. 14 financial services platform B. Riley wrote a letter to Core’s shareholders and lenders, outlining a $72 million financing plan which it believes is sufficient to prevent the miner from being forced to file for chapter 11 bankruptcy.
Should the deal be accepted, the first $40 million would be funded “immediately, with zero contingencies,” while the rest of the funds would be issued if Core agrees to suspend payments to equipment
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