Core Scientific to File Bankruptcy and Continue Mining During the Process

Core Scientific to File Bankruptcy

Core Scientific is the first publicly traded firm to file for bankruptcy, despite the fact that numerous mining companies have struggled financially during the down market. In order to escape bankruptcy, for the time being, bitcoin miners Greenridge and NYDIG negotiated a debt reduction agreement on Tuesday.

One of the biggest publicly traded mining companies, Core Scientific, is still making money. However, the money is not sufficient to pay off the debt on the equipment it was renting. The announcement comes as bitcoin miners fight to survive in the face of plummeting cryptocurrency prices and rising energy expenses.

Bitcoin Mining Firm to Continue Mining

Despite the filing, Core Scientific is choosing not to go into administration and will carry on as usual while it negotiates a settlement with the senior security noteholders who own the majority of the company's debt, according to a report by CNBC.

One of its biggest creditors, B Riley Financial, offered a $72 million lifeline last week to prevent bankruptcy. Prior to this, in November, Core Scientific disclosed a $435 million loss after warning in October that it would file for bankruptcy. This year, income for cryptocurrency miners has fallen precipitously. In November, mining profits decreased by 20% as the bitcoin price lingered below $17,000 for a significant period of the month.