Core Scientific Expects to Finalize its Restructuring Plan by September
It appears that Core Scientific’s journey through bankruptcy proceedings is nearing a positive turning point.
Core Scientific, a Bitcoin mining company currently undergoing bankruptcy proceedings, is on track to finalize a restructuring plan by September.
In a recent filing to a Texas Bankruptcy Court on May 22nd, Core Scientific’s legal representatives stated that the company’s financial position has considerably improved since filing for bankruptcy. As a result, the firm intends to submit a reorganization plan in the coming weeks.
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Core Scientific is currently negotiating with key stakeholders to achieve consensus on the vision for a revitalized company post-bankruptcy.
Despite delays in the bankruptcy proceedings, Core Scientific estimates it will have an additional $46 million once the restructuring plan is finalized.
The projected increase further bolsters the company’s prospects for a successful recovery. In addition, Core Scientific anticipates a substantial windfall from Celsius Network, as it claims the crypto lender owes them around $11 million.
Under Chapter 11 bankruptcy, Core Scientific can continue operations while stakeholders work towards a restructuring plan. This plan may involve measures such as liquidating assets to repay creditors or downsizing business operations to reduce debt.
The increased liquidity boost for Core Scientific can be attributed to several market factors.
Firstly, Bitcoin’s price has surged by over 60% since the company filed for bankruptcy in December 2022, reaching approximately $27,000.
Moreover, the firm has benefited from a significant 24% decrease in power costs since the filing date.
On top of that, the network hashrate, a measure of the overall computational power in Bitcoin mining, has risen by 54%.
On May 22nd, the company revealed that its self-mining equipment mined 39 Bitcoin (BTC).
As Core Scientific navigates the remaining steps of the restructuring process, the outcome will not only shape its future but also serve as a testament to the enduring viability of cryptocurrency mining ventures.