On December 21.2022, Core Scientific, the largest bitcoin mining operator in the industry, filed for Chapter 11 bankruptcy protection in the Southern District of Texas. According to the filing, Core Scientific has approximately 1,000 to 5,000 creditors. The estimated assets of the company are between $1 billion and $5 billion.
Core Scientific Files for Voluntary Chapter 11 Bankruptcy Protection, Largest Secured Creditor is B. Riley Financial Institution
Yet another crypto company has been forced to file for bankruptcy due to the crypto winter that has caused many businesses to shutter this past year. On Wednesday, Core Scientific (NasdaqCORZ), one of the most prominent bitcoin mining operations, filed for bankruptcy in Texas.
The filing by Core Scientific reveals that the company has assets of between $1-10 billion and liabilities of around $1-10 billion. Additionally, Core Scientific’s details show that B. Riley Financial Institution is the largest creditor, with 1,000 to 5,000 additional creditors.
Core Scientific joins the long list of companies that filed for bankruptcy in 2018. In late September 2022, Compute North forwarded Chapter 11 bankruptcy protection.
Bitcoin mining operations have been hit by a number of issues, including Argo Blockchain, Iris Energy?, Greenidge Generation. Greenidge was able to secure a restructuring agreement with NYDIG on December 20. Financial experts say that voluntary bankruptcy is still a possibility for Greenidge.
According to the filing, Core Scientific operated nearly 250,000 machines and around 24.4 exhash per minute (EH/s). Along with B. Riley, other creditors of Core Scientific include Dalton Utilities, Shell Energy Solutions, US Customs And Border Patrol, Duke Energy, Amazon Web Services Inc., DK Construction Company, and Liveview Technologies.
The company also has equity interests in subsidiaries, such as Radar Relay, Starboard Capital, and American Property Acquisition. The Chapter 11 filing was made by Core Scientific President Todd DuChene.
On Wednesday, CNBC spoke to a source familiar with the matter. Core Scientific is still generating positive cash flow, and the mining operation will continue to mine bitcoins to pay off debts. The source said that the deal is not yet finalized, and plans are being made to negotiate a deal for major security note holders, according to CNBC contributor MacKenzie Sigalos.
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