US-based major Bitcoin mining company Core Scientific announced yesterday that its restructuring plan has been approved by the court, providing the company with the opportunity to return to listing on NASDAQ, ending a 13-month bankruptcy restructuring process.
(Background:
Bear market bottoming signal? Bitmain acquires “bankrupt mining company”, acquires $54 million in Core Scientific equity)
Core Scientific, a mining company that filed for bankruptcy restructuring in December 2022, has seen significant improvement in its cash flow due to the recovery of the cryptocurrency market and substantial transaction fees generated by Bitcoin mining. It is expected to overcome bankruptcy.
Just yesterday, Core Scientific issued a statement announcing that the US Southern District of Texas Bankruptcy Court has confirmed the company’s Chapter 11 restructuring plan, approving its relisting on NASDAQ, thus ending the 13-month bankruptcy restructuring process.
According to the plan, the company’s relisting date is January 23rd, and it is expected to relist on NASDAQ the following day. Existing shareholders will receive the company’s new common stock and warrants, accounting for approximately 60% of the new equity.
The restructuring plan also mentions that if all related warrants are cash exercised and the resulting cash is used to repay debt, the company’s existing debts will be fully repaid, reducing the company’s debt by approximately $1 billion compared to before the plan was implemented.
Regarding this plan, Adam Sullivan, CEO of Core Scientific, stated, “We expect to become a stronger company by the end of this month, with a proactive and dedicated team striving for success.”
The Road to Relisting for Core Scientific
Core Scientific is one of the largest blockchain computing data providers and Bitcoin mining companies in North America. Established in 2017, it conducts self-mining activities using its infrastructure and also provides hosting mining services. Last year, it mined a total of 13,762 BTC through self-mining and 5,512 BTC through hosting mining. In terms of finances, the company achieved a profit of $51.2 million in December last year.
On January 4th of this year, Core Scientific announced that it had fully repaid all outstanding balances of the Debtor-in-Possession financing provided by B. Riley. Subsequently, on January 8th, it announced that its $55 million equity offering (ERO) had been oversubscribed.
These developments not only demonstrate Core Scientific’s achievements in improving cash flow but also indicate shareholders’ great confidence in its future operations and development, laying a solid foundation for the company’s court-approved relisting.
Related Reports:
Bitcoin recovery! Bankrupt mining company Core Scientific sells mining machines to repay $38.6 million in debt
Largest mining company revived! Core Scientific secures $72 million financing from B Riley, stock price surges by 200%
Bitcoin mining difficulty drops by another 3.6%! Core Scientific shuts down 37,000 hosted mining machines at Celsius)