Core Scientific Set to Exit Bankruptcy by January 2024, Plans NASDAQ Relisting
Summary:
U.S. based Bitcoin mining giant, Core Scientific, is set to exit bankruptcy proceedings by next month. It has reached an in-principle agreement with stakeholders for issuing convertible bonds and equity by mid-January 2024, followed by a relisting on the NASDAQ exchange. The company, which went public in July 2021 with a $4.3 billion SPAC deal, was forced to file for bankruptcy in December 2022 due to factors like crypto winter and rising energy costs. Currently, the firm owns over 199,000 ASICs and mines around 32 Bitcoins daily.
Core Scientific, a leading Bitcoin (BTC) mining company in the U.S., prepares to exit bankruptcy next month. On December 21, the firm unveiled an in-principle agreement with stakeholders for the issuance of convertible bonds and equity in mid-January 2024 and its subsequent re-listing on the NASDAQ exchange. Core Scientific's CEO, Adam Sullivan, looks forward to the firm's resurgence, highlighting a post-emergence strategy to reduce leverage and a blueprint for ongoing expansion in 2024 onward. As part of the agreement, Core Scientific stockholders will receive new equities in a 25:1 trade-off, equating to $1.08 for each share before the exchange. At the same time, bondholders will get $1.628 for every $1 of nominal value for convertible bonds maturing in April and $1.201 per $1 nominal value for bonds due in August. In July 2021, Core Scientific launched a $4.3 billion special purpose acquisition company (SPAC), with its stock priced at $10. However, Core Scientific had to file for bankruptcy in December 2022 shortly after, due to a mix of factors including crypto winter, increasing energy costs, escalated mining difficulty, and bad debts from crypto company Celsius. The leading company is set to take on $709 million in net debt and $791 million in shareholder equity after the agreement comes into effect in January, as previously reported by Cointelegraph. Only $46 million of the company's debt will mature through till 2025. Even as the company was navigating bankruptcy, a $77 million cash and share agreement was signed with Bitmain, a Bitcoin application-specific integrated circuit (ASIC) manufacturer, for 27,000 mining rigs. Core Scientific presently owns over 199,000 ASICs and mines an average of 32 Bitcoins daily.
Published At
12/21/2023 7:09:47 PM
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