coinculture.com
Bitcoin mining company Core Scientific has received court approval to exit bankruptcy and relist its “CORZ” shares on the Nasdaq, concluding a 13-month restructuring process. The bankruptcy court for the Southern District of Texas confirmed Core Scientific’s reorganisation plan on January 16. The company aims to emerge from bankruptcy on January 23 and expects to be relisted on the Nasdaq the following day.
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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!
Read the full press release here: https://t.co/9pvy6hKOrP pic.twitter.com/3rnKjG1TBv
— Core Scientific (@Core_Scientific) January 16, 2024
According to the Chapter 11 plan, existing shareholders will retain approximately 60% of the company’s shares. The restructuring will also reduce substantial debt from Core Scientific’s balance sheet, ensuring a “full recovery” for all classes of creditors. U.S. Bankruptcy Judge Christopher Lopez, in a hearing, expressed that the plan offers significant recovery for both unsecured creditors and equity holders.
The reorganisation plan is anticipated to safeguard more than 240 jobs at Core Scientific.
A U.S. #BTC mining company, @Core_Scientific has gained approval from a bankruptcy judge for its Chapter 11 restructuring.
This move allows the firm to eliminate $400 million in debt and aims to emerge from bankruptcy by the end of January.
The judge praised the plan for…
— Anthony P⭕️wer (@cazenove_uk) January 16, 2024
The company’s CEO, Adam Sullivan, highlighted the significance of the plan’s confirmation, stating that it marks a pivotal moment in their reorganisation. He expressed optimism about emerging as a stronger company by the end of the month, aligned for success with a motivated team.
“Today’s plan confirmation is a defining moment in our reorganisation; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success,” said Core Scientific CEO Adam Sullivan.
Sullivan emphasised their commitment to creating value for shareholders by executing a growth plan, reducing their balance sheet leverage, and achieving superior efficiency at scale, especially given the increasing demand for Bitcoin and high-value compute.
Core Scientific is one of the largest crypto miners in the United States, which mined over 13,700 self-mined Bitcoin and 5,500 BTC from co-located miners in 2023. However, the company faced financial challenges due to a protracted bear market, surging energy costs, heightened mining difficulty, and bad debt associated with crypto firm Celsius. These factors led to Core Scientific filing for bankruptcy in December 2022, resulting in the delisting of its shares from the Nasdaq Global Select Market.
The company attributed the successful restructuring plan in part to a “substantial increase” in the price of Bitcoin and hash prices since filing for bankruptcy in December 2022.