Mining company Core Scientific emerges from bankruptcy proceedings! Relisted on Nasdaq at the end of January

Core Scientific, one of the largest publicly listed crypto mining companies in the United States, announced that it has received approval from the U.S. Bankruptcy Court to conduct a restructuring plan that will last more than 13 months. The company's bankruptcy proceedings are expected to end on January 23 and relist on Nasdaq the next day under the stock code "CORZ".

Core Scientific emerges from bankruptcy proceedings

Core Scientific announced on Twitter that the Bankruptcy Court for the Southern District of Texas has confirmed and approved the company’s reorganization plan.

The company will fully repay US$1 billion in financing debt and issue warrants to existing shareholders, who will receive approximately 60% of the new company's equity. In addition, the company will retain more than 240 jobs.

At the same time, Core Scientific will also relist on Nasdaq the next day under the stock code "CORZ".

A few days ago, the company also announced an equity placement (ERO) worth US$55 million, which is considered one of the final stages of the mining company's restructuring. In addition, Core Scientific has reached an agreement in principle with all key stakeholders on the terms of the settlement.

The bankruptcy judge, Christopher Lopez, also expressed satisfaction with the plan, saying it provides important repayment of funds to unsecured creditors and shareholders.

After a 13-month restructuring process, Core Scientific CEO Adam Sullivan said that as the demand for Bitcoin and high-power computing continues to increase, we expect to continue to execute growth plans and balance sheet. Create value for shareholders in terms of deleveraging and efficiencies at scale.

And added, "We are ready to be a stronger company by the end of this month."

Core Scientific goal: revenue of $1 billion in 2027

Previously, in 2021 At the peak of the bull market, Core Scientific was arguably one of the listed Bitcoin miners with the highest computing power in the world, operating 143,000 mining machines.

However, in December 2022, Core Scientific faced an operational crisis due to factors such as the sluggish encryption market, rising energy prices, and increasing mining difficulty. At that time, the company filed for bankruptcy protection and claimed that it would not be liquidated but would continue to operate to gradually repay lease and financing debts.

It is understood that Core Scientific operated approximately 209,000 self-owned and managed Bitcoin mining machines in 2023, and produced a total of 13,762 Bitcoins that year, with a total hashrate of 23.2EH/ s.

Now, the encryption market is picking up, and the company has successfully emerged from bankruptcy. Through the report, it announced that it will increase the number of its mining machines to 1.1 million units in 2027, and also set a revenue target for 2027. at $1 billion.

On the other hand, there is no further news about the Bitcoin mining company Compute North, which also filed for bankruptcy protection due to the bear market in 2022.

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