{"id":71741,"date":"2022-12-21T10:30:31","date_gmt":"2022-12-21T08:30:31","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71741"},"modified":"2025-09-08T10:50:02","modified_gmt":"2025-09-08T07:50:02","slug":"bitcoin-miner-core-scientific-files-for-chapter-11-bankruptcy","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitcoin-miner-core-scientific-files-for-chapter-11-bankruptcy\/","title":{"rendered":"Bitcoin miner Core Scientific files for Chapter 11 bankruptcy"},"content":{"rendered":"<p>The mining company Core Scientific is set to file for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code, according to <a href=\\\"https:\/\/www.cnbc.com\/2022\/12\/20\/bitcoin-miner-core-scientific-filing-for-bankruptcy-will-keep-mining.html\\\">CNBC<\/a>, citing sources.<\/p>\n<div class=\\\"wp-block-text-wrappers-update article_update\\\"><span class=\\\"gtb_text-wrappers_update_head\\\">Update: <\/span><\/p>\n<p>The company has filed for bankruptcy protection. It said it would continue operations and expects to quickly reorganize the business under agreements with creditors holding 50% of the total convertible notes.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Core Scientific remains dedicated and committed to operate our self-mining and hosted operations as normal while we work through the implementation of our restructuring. <\/p>\n<p>Core Scientific Announces Comprehensive Restructuring Transaction (<a href=\\\"https:\/\/t.co\/hDEy3i3xEl\\\">https:\/\/t.co\/hDEy3i3xEl<\/a>)<\/p>\n<p>\u2014 Core Scientific (@Core_Scientific) <a href=\\\"https:\/\/twitter.com\/Core_Scientific\/status\/1605639778954682368?ref_src=twsrc%5Etfw\\\">December 21, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\n<\/div>\n<p>According to a CNBC source, the firm continues to generate positive cash flow. However, that cash flow is not enough to service the debt on leased equipment.<\/p>\n<p>According to CNBC, after filing the petition, Core Scientific does not intend to commence liquidation proceedings. The company expects to continue operations until reaching an agreement with major creditors.<\/p>\n<p>In October, Core Scientific warned of potential <a href=\"https:\/\/u1f987.com\/en\/news\/core-scientific-faces-bankruptcy-risk\">exhaustion of cash reserves<\/a> and their equivalents by year-end. The company cited a drop in Bitcoin price, higher electricity tariffs, and <a href=\"https:\/\/u1f987.com\/en\/news\/mining-difficulty-hits-a-new-high\">growth in hash rate<\/a>. Pressure on liquidity was also driven by legal costs and the bankruptcy of one of its largest hosting clients \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-files-for-bankruptcy-protection\">Celsius Network<\/a>.<\/p>\n<p>For the third quarter, Core Scientific reported <a href=\"https:\/\/u1f987.com\/en\/news\/core-scientific-posts-434-8-million-loss-in-q3\">a net loss of $434.8 million<\/a>. In the November report, the firm again voiced doubt about its ability to continue operations without additional liquidity.<\/p>\n<p>The company then said total debt stood at around $1.05 billion. Among the major creditors: BlockFi (in bankruptcy proceedings), the financial firm B. Riley, the NYDIG platform and the Anchorage division.<\/p>\n<p>In December, co-founder and co-CEO of B. Riley, Bryant Riley, proposed that Core Scientific <a href=\"https:\/\/u1f987.com\/en\/news\/lender-b-riley-financial-offers-core-scientific-72-million-to-avert-bankruptcy\">allocate $72 million<\/a> on &#8216;favorable terms&#8217; to rescue it from bankruptcy. His plan envisages a scheme of creditor payment deferrals that would require their agreement.<\/p>\n<p>Since the start of the year, Core Scientific&#8217;s stock has fallen 97.7%. Market capitalisation stands at $72 million versus $3 billion at the January <a href=\"https:\/\/u1f987.com\/en\/news\/core-scientific-goes-public-on-nasdaq-via-spac-merger\">IPO<\/a>. In light of Riley&#8217;s proposal, the company&#8217;s stock rose 53% over the past week.<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh5.googleusercontent.com\/u5C5AGDbF3A54-qz0LDh3c2XFP6Nx9p2Nkltl82GX6YP-zAJtSRYI_m0HUjKEBRk93nrf0fCz_rk6EhWwvNUfAJw0IbVoPZG2TyODfqtIGXk0O7NiP_CQ0Nut-3WHOOktfb_LnATraLW-ffc6vUJw51gkQTmhgvzo9glh4i21K_mjBdE3s2RRsohAC0eAA\\\" alt=\\\"Bitcoin miner Core Scientific files for bankruptcy\\\"\/><figcaption>Data: <a href=\\\"https:\/\/data.hashrateindex.com\/stocks?tab=performance\\\">Hashrate Index<\/a>.<\/figcaption><\/figure>\n<p>In the second quarter, Core Scientific posted a net loss of <a href=\"https:\/\/u1f987.com\/en\/news\/core-scientific-posts-861-7-million-loss-after-bitcoin-revaluation\">$861.7 million<\/a> on revenue of $164 million.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Telegram<\/a> \u2014 crypto news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The mining company Core Scientific is set to file for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code, according to CNBC, citing sources.<\/p>\n","protected":false},"author":1,"featured_media":71742,"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":[1300,1271,1137],"class_list":["post-71741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-core-scientific","tag-cryptocurrency-mining"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71741","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=71741"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71741\/revisions"}],"predecessor-version":[{"id":71743,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71741\/revisions\/71743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/71742"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=71741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=71741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=71741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}