{"id":5566,"date":"2022-12-21T12:32:08","date_gmt":"2022-12-21T12:32:08","guid":{"rendered":"http:\/\/ci02b35b78e00124a2"},"modified":"2022-12-21T12:32:08","modified_gmt":"2022-12-21T12:32:08","slug":"bitcoin-miner-core-scientific-bankruptcy","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/legal\/bitcoin-miner-core-scientific-bankruptcy","title":{"rendered":"Giant Bitcoin Miner Core Scientific Files For Bankruptcy"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><ul>\n<li>Core Scientific has officially filed for bankruptcy.<\/li>\n<li>The filing followed a decline in the firm\u2019s operating performance and liquidity.<\/li>\n<li>The giant bitcoin miner said it plans to continue operating as it navigates the restructuring.<\/li>\n<\/ul>\n<p>Nasdaq-listed <a href=\"https:\/\/bitcoinmagazine.com\/tags\/core-scientific\">Core Scientific<\/a> filed for bankruptcy in the U.S. early Wednesday, confirming late Tuesday reports that the miner would seek Chapter 11 protection on the following day.<\/p>\n<p>The company said in a statement that the decision followed &#8220;a comprehensive review of potential alternatives and exhaustive discussions with various company stakeholders.&#8221; Core Scientific added that it expects to enter into a restructuring support agreement with the Ad Hoc Noteholder Group, representing more than 50% of the holders of its convertible notes.<\/p>\n<p>&#8220;The filing of these cases was necessitated by a decline in the Company&#8217;s operating performance and liquidity suffering from the prolonged decrease in the price of bitcoin, the increase in electricity costs necessary to power the Company&#8217;s data centers, and the failure by certain of its hosting customers to honor their payment obligations,&#8221; per the statement. &#8220;In response to these factors, the Company has actively taken steps to decrease monthly costs, delay construction expenses, reduce and delay capital expenditures and increase hosting profitability.&#8221;<\/p>\n<p>Core Scientific said it is &#8220;committed to operating normally&#8221; as it moves &#8220;swiftly through the process&#8221; of restructuring.<\/p>\n<p>&#8220;During this process and upon emergence, the Company will continue to operate its existing self-mining and hosting operations, which remain significantly cash flow positive on a debt-free basis,&#8221; per the <a href=\"https:\/\/www.prnewswire.com\/news-releases\/core-scientific-announces-comprehensive-restructuring-transaction-301708021.html\" rel=\"nofollow noopener\" target=\"_blank\">statement<\/a>. &#8220;The Company remains dedicated to providing hosting services and self-mining in its state-of-the-art data centers.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the largest bitcoin mining companies in the U.S. has filed for Chapter 11 bankruptcy protection.<\/p>\n","protected":false},"author":2572,"featured_media":3755,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[1504,564,488,93],"class_list":{"0":"post-5566","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal","8":"tag-bankruptcy","9":"tag-bitcoin-miner","10":"tag-core-scientific","11":"tag-news"},"author_data":{"id":2572,"name":"Namcios","nicename":"namcios","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/pfp-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/20220923_better-bitcoin-_miners_-dont-exist-doc-sharp-_bosch_.png","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/5566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2572"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=5566"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/5566\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/3755"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=5566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=5566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=5566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}