Core Scientific, the Bitcoin mining firm that filed for Chapter 11 bankruptcy in December 2022, is set to exit bankruptcy in the coming days.
Core Scientific, the Bitcoin mining firm that filed for Chapter 11 bankruptcy in December 2022, is set to exit bankruptcy in the coming days and relist its shares on the Nasdaq by the end of January 2024. The bankruptcy court has approved Core's reorganization plan, which will see shareholders receive shares of the company's new common stock, representing 60% of the new equity.
This announcement follows Core's successful oversubscribed $55 million equity rights offering earlier this month. Core CEO Adam Sullivan expressed optimism about the company's future, stating that it would emerge from bankruptcy stronger than before.
Sullivan said that “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.”
Core's bankruptcy filing came during a challenging period for the crypto industry, with Bitcoin falling to a low of $16,000 in November 2022. However, Bitcoin has since rebounded significantly, now trading at around $43,000, driven by the approval of spot Bitcoin exchange-traded funds (ETFs). The upcoming Bitcoin halving in April will slash Bitcoin mining rewards by half.
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