Core Scientific: A Bitcoin Miner's Rising from Bankruptcy & Share Relisting

• Core Scientific To Re-list on Nasdaq After Bankruptcy Reorganization Approval
• Details of the Reorganization Plan
• Equity Rights Offering and Bankruptcy Filing
• Emerging From Bankruptcy Amidst Market Recovery

Core Scientific To Re-list on Nasdaq After Bankruptcy Reorganization Approval

Core Scientific, a highly recognised Bitcoin$42,260 -0.64% miner that faced significant challenges during the cryptocurrency downturn, has been granted approval for its Chapter 11 reorganization plans by the Southern District of Texas bankruptcy court. The company intends to re-list its shares on Nasdaq by the end of this month.

Details of the Reorganization Plan

The reorganization plan dictates that Core Scientific will settle its existing debt in entirety. Existing shareholders are set to acquire approximately 60% of the new company's equity, as per information shared in a press statement. Core Scientific's CEO, Adam Sullivan, declared the confirmation of their plan a critical milestone on their path to reorganization and anticipates a stronger company emerging by the end of the month, backed by a highly motivated and aligned team.

Equity Rights Offering and Bankruptcy Filing

The company's approval follows the closing of its proposed $55 million equity rights offering earlier this month, marking one of the final steps in the miner's reorganization process. Notably, Core Scientific was the largest publicly traded Bitcoin miner by computing power or hash rate during the 2021 bull market's peak. It was operating 143,000 mining rigs as Bitcoin price soared above $60,000. However, by the time the company filed for Chapter 11 on December 21, 2022, Bitcoin's price had plunged to around $16,000.

Emerging From Bankruptcy Amidst Market Recovery

As Core Scientific emerges from bankruptcy, it coincides with the Bitcoin price recuperation to $43,000. The cryptocurrency has been buoyed by renewed investor interest following the Securities and Exchange Commission's (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S, and anticipations around the upcoming Bitcoin halving. Core Scientific expects to maintain its leader position amongst competitors post-bankruptcy, as stated in a recent presentation. The miner also projects a significant ramp-up in its operations this year, with expectations of deploying 182,000 mining rigs, and escalating to nearly 1.1 million by 2027. The company further anticipates nearly $600 million in annual revenue by 2024 and nearly $1 billion by 2027.

Edited by Jonathan Stoker