US leading Bitcoin miner files for Chapter 11 bankruptcy. Details here
US-based Core Scientific is the latest in the cryptocurrency market to file for bankruptcy. On Wednesday, the crypto miner said they have filed for Chapter 11 bankruptcy protection. The company is one of the leading publicly traded cryptocurrency mining companies in the US. This blow comes after the FTX Group's voluntary insolvency proceedings.
So far the current year has been havoc for the cryptocurrency market due to extreme volatility, rising interest rates, and economic uncertainties. Such led to a series of shocks for crypto markets such as the collapse of Terra tokens, liquidation of Three Arrows Capital, and illiquidity crunch which led to the bankruptcy of exchanges such as Celsius Network, FTX, and Voyager Digital among others.
As per a Reuters report, Austin, Texas-based Core Scientific said it would not liquidate and would continue to operate normally, as it expects to enter into a restructuring support agreement with its creditors, who represent over 50% of the holders of its convertible notes.
In the pre-market trading, Core Scientific (CORZ) shares dipped by 19%. Currently, CORZ is up by 3%. However, so far in 2022, it has nosedived by around 98%.
Also, Core Scientific revealed that its creditors have agreed to pump in $56 million in debtor-in-possession financing. Last week, among the largest creditors of the miner, B. Riley Financial had offered to infuse $72 million to avoid Core Scientific's bankruptcy.
Under the bankruptcy paper, the miner said they have around $1 billion to $10 billion in assets and liabilities, while their creditors are between 1,000 and 5,000.
It is known that Core Scientific was impacted due to a lawsuit with Celsius Networks LLC and its affiliates.
Core Scientific had managed to
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