Core Scientific emerges from bankruptcy and prepares to relist on Nasdaq
Core Scientific, a major player in cryptocurrency mining in the United States, has received court approval to exit bankruptcy and plans to relist its shares on Nasdaq. This development marks the end of a 13-month restructuring process, with a targeted exit date of January 23rd and planned relisting the following day.
The Bankruptcy Court has confirmed our Chapter 11 plan of reorganization. The Bankruptcy Court’s approval of our plan clears the way for Core Scientific to emerge and re-list on Nasdaq by the end of January 2024!
Details of Core Scientific’s reorganization plan
According to the terms of the Chapter 11 plan, current shareholders will retain approximately 60% of the company’s shares. The plan also aims to reduce millions of dollars in debt from the company’s balance sheet and provide full recovery to all classes of creditors. Judge Christopher Lopez highlighted the excellent expected recovery for both unsecured creditors and shareholders.
Job preservation and future prospects
The plan is expected to preserve over 240 jobs within the company. Adam Sullivan, CEO of Core Scientific, expressed optimism about the company’s future, citing the growing demand for Bitcoin and high-value computing calculations.
Core Scientific is one of the world’s largest cryptocurrency miners, having produced over 13,700 Bitcoin mined by themselves and 5,500 BTC from co-located miners in 2023. However, facing an extended bear market, rising energy prices, increased mining difficulty, and bad debts to crypto firm Celsius, Core Scientific filed for bankruptcy in December 2022.
The company was previously listed on the Nasdaq Global Select Market under the symbol ‘CORZ’, but was delisted due to the bankruptcy proceedings.
Core Scientific’s restructuring facilitated by Bitcoin price rebound
The Core Scientific restructuring plan was facilitated in part by a substantial increase in the price of Bitcoin and hash rates since the bankruptcy filing in December 2022. This price rebound has helped the company stabilize its financial situation and prepare for a new phase of growth.
