US-based large-scale Bitcoin mining company Core Scientific announced yesterday (16th) that its restructuring plan has been approved by the court, providing the company with an opportunity to return to listing on Nasdaq, ending a 13-month bankruptcy restructuring process.
(Background information:
Miner’s Reversal in 2023: Core Scientific Earns 51.2 Million Pounds, Marathon Digital Sets Record by Mining 12,852 Bitcoins)
In December 2022, Core Scientific, a mining company that filed for bankruptcy restructuring, has seen significant improvement in its cash flow due to the recovery of the cryptocurrency market and substantial transaction fees generated by Bitcoin mining. It is expected to overcome bankruptcy.
Just yesterday, Core Scientific issued a statement announcing that the US Bankruptcy Court for the Southern District of Texas has confirmed the company’s Chapter 11 reorganization plan and approved its relisting on Nasdaq, thereby ending the 13-month bankruptcy restructuring process.
According to the plan, the company’s relisting date is January 23rd, and it is expected to relist on Nasdaq the following day. Existing shareholders will receive the company’s new common stock and warrants, accounting for approximately 60% of the new equity.
The restructuring plan also mentions that if all relevant warrants are exercised in cash and the resulting cash is used to repay debts, the company’s existing debt will be fully repaid. This means that the company’s debt will be reduced by approximately $1 billion compared to before the plan was implemented.
Regarding this plan, Adam Sullivan, CEO of Core Scientific, said, “We expect to become a stronger company by the end of this month, with a proactive and ambitious team striving for success.”
Core Scientific’s Path to Relisting
Core Scientific is one of the largest blockchain computing data providers and Bitcoin mining companies in North America, established in 2017. It conducts self-mining activities using its infrastructure and also provides hosting mining services. Last year, it mined a total of 13,762 BTC through self-mining and 5,512 BTC through hosting mining. Financially, the company achieved a profit of $51.2 million in December last year.
On January 4th of this year, Core Scientific announced that it had repaid all outstanding balances of the Debtor-in-Possession (DIP) financing provided by B. Riley. Then, on January 8th, it announced that its $55 million equity offering (ERO) received oversubscriptions.
These developments not only demonstrate Core Scientific’s achievements in improving cash flow but also indicate shareholders’ great confidence in its future operations and development, laying a solid foundation for the company’s court-approved relisting.
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