Home - Bitcoin - Bankrupt Bitcoin Miner Core Scientific Presents Chapter 11 Plan

James Carter

June 23, 2023

Bankrupt Bitcoin Miner Core Scientific Presents Chapter 11 Plan

Bitcoin Miner Core refers to the software that is used to mine Bitcoin, the world’s most popular cryptocurrency. It is an essential tool for individuals or organizations who participate in the process of validating and adding transactions to the Bitcoin blockchain. Bitcoin mining involves solving complex mathematical problems to secure the network and earn new bitcoins as a reward.

Bitcoin Miner Core provides the necessary algorithms and protocols for miners to perform these calculations efficiently. It plays a crucial role in maintaining the integrity and security of the Bitcoin network. While also enabling miners to contribute their computing power and earn rewards in the form of bitcoins.

Bankrupt Bitcoin Miner

Core Scientific, a problematic Bitcoin (BTC) miner based in the United States, has submitted its reorganization plan in accordance with Chapter 11 of the bankruptcy legislation in the United States, and it now intends to turn debt into equity for its creditors.

On Wednesday, the mining company submitted a document in the Southern District of Texas. Demonstrating their consent to a restructuring plan proposed by a group of creditors. The plan aims to convert debt into 97% ownership of the company. The submission occurred on Wednesday.

Current Core Scientific shareholders would, as a result of the plan, keep some of their own in the company, preventing them from losing all of their stake in the business entirely.

Core Scientific would be able to reduce its debt of hundreds of millions of dollars with the help of the proposal, which would also significantly cut the company’s annual interest expenditures.

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The company stated that it is “seeking to build as much consensus as possible“. Over its new look after the bankruptcy procedures, and it underlined that it continues to be optimistic about a future revival of its business.

The court’s approval is still necessary for the reorganization proposal to move forward.

Plan comes six months after bankruptcy

Exactly six months after consultations with key stakeholders resulted in the formulation of the restructuring plan. The company submitted its initial petition for protection under the Bankruptcy Act.

At the time, the mining company stated that it had filed for bankruptcy due to an outstanding debt.

Additionally, stated that it had incurred net loss of 434.8M dollars for 3 months that ended on September 30, 2022. Liquidity position of only four million dollars at the time that it filed for bankruptcy protection.

On Wednesday, the day that the proposal was made public, shares of Core Scientific. Core Scientific are traded on the over-the-counter (OTC) market under the ticker CORZQ, increased by more than 11%.

The upswing carried over into Thursday when the stock climbed 12% thanks to a generally strong feeling in the spot Bitcoin market. The increase has now gone on for three consecutive days.

The price of the stock, which is currently $0.51 a share, indicates that it has lost 76% of its value over the past year.