- Core Scientific has officially filed for bankruptcy.
- The filing resulted in a decline in the company’s operating performance and liquidity.
- The giant bitcoin miner said it plans to continue operating while it navigates restructuring.
Nasdaq-listed Core Scientific filed for bankruptcy in the US early Wednesday, confirming late Tuesday reports that the miner would seek Chapter 11 protection the next day.
The company said in a statement that the decision followed a “comprehensive review of potential alternatives and comprehensive discussions with the company’s various stakeholders.” Core Scientific added that it will enter into a restructuring support agreement with the Ad Hoc Noteholder Group, which represents more than 50% of convertible noteholders.
“The filing of the case is required due to the decline in the Company’s operating performance and liquidity due to the prolonged decline in the price of bitcoin, the increase in the cost of electricity required to power the Company’s data centers, and the failure of certain hosting customers to honor their payment obligations,” according to the statement. “In response to these factors, the Company has actively taken steps to reduce monthly costs, delay construction costs, reduce and delay capital expenditures and increase hosting revenues.”
Inti Ilmiah said it is “committed to normal operations” as it moves “quickly through the process” of restructuring.
“Throughout this process and as it emerges, the Company will continue to operate its existing independent mining and hosting operations, which remain cash flow positive debt-free,” according to the statement. “The company remains dedicated to providing independent hosting and mining services in state-of-the-art data centers.”