Bitcoin Miner Core Scientific Files for Bankruptcy
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Core Scientific mines Bitcoin at its facilities in Georgia, Kentucky, North Carolina, North Dakota and Texas. Image: Dan Kitwood (Getty Images)
The cryptocurrency industry suffers another major blow – one of the largest publicly traded bitcoin miners, Core Scientific, has filed for bankruptcy. The miner is reportedly still planning to mine cryptocurrency while paying off his debt.
CNBC reported late last night the company’s decision to file for Chapter 11 bankruptcy protection in Texas earlier this morning. While this may sound like a giant nail in the miner’s coffin, Core Scientific is reportedly still making money, just not enough to pay off its debt. CNBC says the company has no liquidation plans but has reportedly reached an agreement with some of its lenders, who hold most of the company’s debt. According to the company’s website, Core Scientific mines bitcoin at its facilities in Georgia, Kentucky, North Carolina, North Dakota and Texas.
Core Scientific did not immediately respond to Gizmodo’s request for comment on the bankruptcy filing decision or for details on the company’s plans for the future.
According to a CoinDesk article citing the company’s Southern District of Texas filing, Core Scientific holds an estimated $1 billion to $10 billion in debt with 1,000 to 5,000 creditors. The miner’s net worth is between $1 billion and $10 billion.
An earnings report for the quarter ended September 30 showed that the company’s assets totaled $1.4 billion, while its liabilities totaled $1.3 billion. Meanwhile, Core Scientific will enter into a restructuring support agreement with the ad hoc bondholder group, representing 50% of Core Scientific’s lenders.
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Crypto winter is upon us – what was once a semi-promising industry earlier this year has continued to falter. Notably, FTX CEO Sam Bankman-Fried was arrested and is reportedly now back in the United States, where he is facing eight charges including fraud and money laundering.
