Dec 21, 2022, largest industry Core Scientific, a Bitcoin mining operation, has filed for Chapter 11 bankruptcy protection in the Southern District of Texas. Core Scientific has approximately 1,000 to 5,000 creditors with estimated assets worth between $1 billion and $10 billion, according to filings.
Core Scientific Voluntarily Files for Chapter 11 Bankruptcy Protection, Company’s Largest Unsecured Creditor Is Financial Institution B. Riley
Crypto Winter Another crypto firm has filed for bankruptcy protection, as has caused countless businesses to shudder this year. On Wednesday, Core Scientific (Nasdaq: CORZ), one of his largest Bitcoin mining companies,filed for bankruptcy in Texas.
The filing notes that not only does Core Scientific have $1-10 billion in assets, but he also has $1-10 billion in liabilities. In addition, Core Scientific details that the largest creditor is financial institution B. Riley, with others lining him up with 1,000 to 5,000 creditors.
Core Scientific is one of many financially distressed crypto mining businesses, joining a long list of crypto companies that have filed for bankruptcy protection this year. For example, in late September 2022, Compute North filed for and filed for Chapter 11 bankruptcy protection.
Bitcoin mining businesses such as Argo Blockchain, Iris Energy and Greenidge Generation are facing financial troubles. Greenidge was able to secure her restructuring deal with NYDIG on his December 20th, but voluntary bankruptcy is still being considered, according to Greenidge’s financial reports. According to the
filing, Core Scientific operated nearly 250,000 machines and a hash rate of approximately 24.4 exahashes per second (EH/s). In addition to B. Riley, other Core Scientific creditors include Dalton Utilities, Shell Energy Solutions, U.S. Customs and Border Patrol, Duke Energy, Amazon Web Services Inc., DK Construction Company, and Liveview Technologies .
The company also has investments in subsidiaries such as Radar Relay, Starboard Capital and American Property Acquisition. The Chapter 11 application was submitted by Todd Duchene, President of Core Scientific.
On Wednesday, a person familiar with the matter, , told CNBC that Core Scientific was still generating positive cash flow and that the mining operation was using bitcoin to pay off its debt. said it will continue mining. According to CNBC contributor MacKenzie Sigalos, the source further said the business will not be liquidated and plans to negotiate deals with senior security holders.
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