From the Brink to Bitcoin Boom: Core Scientific's Remarkable Comeback Story
Jan 17, 2024
A U.S. bankruptcy judge has given the green light for Core Scientific, a bitcoin mining company, to proceed with its Chapter 11 restructuring plan, allowing it to shed $400 million in debt and potentially emerge from bankruptcy by the end of January. This decision comes as a result of favourable developments in cryptocurrency and power markets, with bitcoin prices surging from around $16,900 to approximately $43,000 since Core Scientific filed for bankruptcy in December 2022. The restructuring also enables the company to re-list its shares on the Nasdaq exchange, with existing equity holders retaining about 60% ownership. Core Scientific's successful turnaround is seen as a positive outcome that will preserve 240 jobs and reduce annual interest costs by $60 million.