Since the crypto winter started at the beginning of 2022, many Bitcoin mining firms have had trouble making money. Many crypto firms have had trouble, and some have had to shut down. The impact was mostly felt by crypto firms like Celsius Network, Three Arrows Capital, Voyager Digital, and others.
Core Scientific, which works with blockchain and AI, is one of the affected companies. Core Scientific is currently thinking about going out of business. This is in contrast to other companies, which had to lay off workers and stop withdrawals.
More about the case
Core Scientific is likely to file for bankruptcy because the company said it could run out of money by the end of 2022. But it said that the main reason for the fight is the current crash of the crypto market.
The crypto crash might have been handled, but there are other problems to deal with. One example is how the price of electricity has gone up. The company is in a tough spot because of all the bad things that are happening right now.
In its report to the Security and Exchange Commission of the United States, the company said these things.
Most of the time, Bitcoin miners don’t have the best of times. Sources said that the rise in the Bitcoin hash rate was another important factor in the problem. Because of this, Bitcoin is likely to see more lows as people who own the token might start to think about selling.
The Drop in Stocks
One part of the company’s ongoing crisis is that it is running out of cash. So, the company’s stock (NASDAQ: CORZ) fell quickly from the last time the market was watched.
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Data show that the price of the stock has dropped by 71% in the last 24 hours. According to data from Bloomberg, the current price of CORZ stock is $0.20. The company can only hope that things will get better quickly.
Core Scientific Holdings in Bitcoin
The company now has a lot less Bitcoin than it did before. When the company filed with the SEC in September of last year, it had about 1,501 Bitcoin in its possession. As of Thursday, the company had a total of 24 BTC and $26.6 million in funds.
At the moment, the company owes money, and the way things are going, it won’t be able to pay off those debts. Also, it won’t be able to pay for its equipment even after the due dates in late October and November.
In the meantime, the company is looking for ways to fix the problem. Core Scientific is thinking about changing how its finances work, hiring a strategic advisor, and getting more money.
