Nasdaq-quoted bitcoin miner Core Scientific is in the process of filing for Chapter 11 bankruptcy protection before the Texas courts, according to a CNBC report.
Core Scientific’s network of Texas-based data centres was once among the most powerful bitcoin miners in the world, yet the bankruptcy filing comes as little surprise.
Plummeting bitcoin prices and skyrocketing energy costs have wreaked havoc on the crypto mining sector, and speculation of bankruptcy among the major players has been rife.
Core, whose share price has tanked 98% in 2022 so far, is still generating cash flow, but its equipment financing obligations far outweigh revenues.
B. Riley offered to bail the miner out last week; an offer which was seemingly not good enough for Core Scientific.
The group will continue mining bitcoin while negotiating with equity holders, read the CNBC report.
More to come…