Core Scientific files for bankruptcy

English Dec 20, 2022

This week, a big crypto miner company, Core Scientific, filed for judicial bankruptcy protection in Texas due to falling revenues and Bitcoin prices, as well as rising energy costs.

Core Scientific lists both estimated assets and liabilities ranging from $1 billion to $10 billion, according to a court filing. However, the company will continue its mining operations and has no plans to liquidate.

On Dec. 14, financial services platform B. Riley offered to provide Core Scientific with $72 million in non-cash funding to preserve value for stakeholders. The decision came after Core's market valuation fell from $4.3 billion in July 2021 to $78 million today.

Earlier in April, the company had to sell 9,618 BTC due to a prolonged bear market in order to stay operational. While the company continues to generate positive cash flow, the income is not sufficient to cover operational costs, involving repaying leases for its Bitcoin mining equipment.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.