Core Scientific Gains Court Approval to Emerge from Bankruptcy and Re-list on Nasdaq
Summary:
Core Scientific, a major cryptocurrency miner in the U.S., has received court approval to exit bankruptcy. The company is slated to relist its "CORZ" shares on the Nasdaq following a 13-month restructuring process. The ruling also allows existing shareholders to retain 60% of the company's shares and trims millions in debt. Core Scientific CEO Adam Sullivan sees the turnaround as an opportunity for significant company growth and shareholder value in response to increasing demand for Bitcoin. Previously the company had declared bankruptcy due to factors including a bear market, rising energy costs, and increased mining difficulty.
The cryptocurrency mining company, Core Scientific, has received court authorization to exit bankruptcy and relaunch its shares, "CORZ", on the Nasdaq. This action marks the conclusion of a 13-month overhaul process. On January 16, Core Scientific announced that its reorganization strategy had been ratified by the bankruptcy court of the Southern District of Texas. The company presently aims to exit bankruptcy by January 23, and expects to return to the Nasdaq the subsequent day.
The Chapter 11 plan permits existing shareholders to maintain approximately 60% of the company’s shares. The renovation plan also proposes to cut the company's deficit by millions and assures "full repayment" to all creditor classes. Christopher Lopez, the U.S. Bankruptcy judge, allegedly acknowledged during a court hearing that the strategy offers a "remarkable recovery for unsecured creditors as well as equity owners”. The strategy is also set to secure more than 240 job positions within the company.
Core Scientific CEO, Adam Sullivan stated, “Today’s plan validation marks a pivotal moment in our restructuring; we are set to emerge as an even stronger company by the end of this month, with a highly driven team prepared for success.” He added, “With increasing demand for Bitcoin and high-value computation, we anticipate generating value for our shareholders as we proceed with our expansion plan, decrease our balance sheet debt and deliver superior efficiency on a large scale.”
Core Scientific is among the biggest crypto miners in the United States, having generated over 13,700 self-mined Bitcoin and 5,500 Bitcoin from co-located miners in 2023. Nevertheless, factors such as an extended bear market, escalating energy prices, augmented mining difficulty, and bad debt lent to cryptocurrency firm Celsius, led the company to declare bankruptcy in December 2022. It was previously listed on the Nasdaq Global Select Market under the symbol “CORZ” but was removed following the initiation of bankruptcy procedures. The company announced that the restructuring plan was feasible partly due to a "significant increase" in the Bitcoin price and hash rates since the bankruptcy filing in December 2022.
Published At
1/17/2024 2:56:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.