{"id":69197,"date":"2022-10-27T16:46:54","date_gmt":"2022-10-27T13:46:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69197"},"modified":"2025-09-07T18:34:41","modified_gmt":"2025-09-07T15:34:41","slug":"core-scientific-faces-bankruptcy-risk","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/core-scientific-faces-bankruptcy-risk\/","title":{"rendered":"Core Scientific Faces Bankruptcy Risk"},"content":{"rendered":"<p>The public mining company and blockchain-hosting provider Core Scientific could exhaust its cash and cash equivalents by the end of the year. This information is contained in the <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1839341\/000119312522270236\/d395956d8k.htm\">filing with the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span><\/a>.<\/p>\n<p>Currently, the company reports $26.6 million and 24 BTC (~$495,000) on its balance sheet. As of September 30, reserves stood at $29.5 million and 1,051 BTC.<\/p>\n<p>Liquidity problems arose from a prolonged decline in Bitcoin&#8217;s price, higher electricity costs, rising hash rate, and involvement in litigation over the bankruptcy of the Celsius Network, the cryptocurrency-lending platform.<\/p>\n<p>The latter has an outstanding debt of $5.4 million to the firm. Core Scientific noted that it relates to unpaid hosting services for equipment. The company had been a partner of the platform in implementing its investment programme <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-network-invested-more-than-200-million-in-bitcoin-mining\">for $200 million<\/a>, related to mining.<\/p>\n<p>Core Scientific warned the SEC that it would not meet its obligations at the end of October and in early November, including payment for equipment.<\/p>\n<p>The company is examining options to navigate the difficulties. Management is considering raising additional capital or restructuring.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cCore Scientific could issue shares or bonds, defer capital expenditures, or sell assets. The company does not rule out filing for bankruptcy to shield itself from creditors,\u201d<\/em> the statement said.<\/p>\n<\/blockquote>\n<p>In September, the industry faced its <a href=\"https:\/\/u1f987.com\/en\/news\/compute-north-files-for-bankruptcy\">first major bankruptcy<\/a> \u2014 the hosting provider Compute North filed for bankruptcy. Some companies such as <a href=\"https:\/\/u1f987.com\/en\/news\/stronghold-digital-mining-to-save-up-to-25-million-after-termination-of-deal-with-northern-data\">Stronghold<\/a> or Argo Blockchain are trimming costs and selling equipment.<\/p>\n<p>In the same month, the mining-services provider Bitdeer<a href=\"https:\/\/u1f987.com\/en\/news\/bitdeers-jihan-wu-to-launch-a-250-million-miners-relief-fund\"> created<\/a> a $250 million fund to buy assets from troubled industry companies.<\/p>\n<p>Subsequently, similar initiatives were undertaken<a href=\"https:\/\/u1f987.com\/en\/news\/binance-pool-launches-500m-fund-to-back-bitcoin-miners\">Binance<\/a> and<a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-creates-vehicle-for-bitcoin-mining-investments\">Grayscale<\/a>.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The public mining company and blockchain-hosting provider Core Scientific could exhaust its cash and cash equivalents by the end of the year. This information is contained in the SEC filing.<\/p>\n","protected":false},"author":1,"featured_media":69198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[83,1271,1137],"class_list":["post-69197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-business","tag-core-scientific","tag-cryptocurrency-mining"],"aioseo_notices":[],"amp_enabled":true,"views":"32","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69197"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69197\/revisions"}],"predecessor-version":[{"id":69199,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69197\/revisions\/69199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69198"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}