The mining business Core Scientific declared it was prepared to emerge from bankruptcy after a U.S. judge approved its reorganization plan.
According to Core Scientific CEO Adam Sullivan, the plan’s confirmation marks a turning point for the business. The CEO of Core Scientific, said:
“With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale.”
According to the press release, Core Scientific will pay off its debt in full and stockholders will get about 60% of the company’s new share capital as part of the reorganization plan.
By the end of January 2024, the mining company hopes to relist on the Nasdaq exchange. The corporation warned in November 2022 that cash reserves and equivalents might run out before the year is up.
The miner reported a rise in electricity rates, a drop in the price of Bitcoin (BTC), and an increase in hash rate. Legal fees and the bankruptcy of Celsius Network, one of its biggest hosting clients, put additional strain on liquidity.
Core Scientific filed for Chapter 11 bankruptcy in December of 2022. However, following the filing, Core Scientific had no intention of starting the liquidation process. Until a settlement with its principal creditors is achieved, the company plans to carry on with business as usual.
