Bitcoin Miner Core Scientific Files for Bankruptcy

The cryptocurrency trade takes one other huge hit—one of many largest publicly traded Bitcoin miners, Core Scientific, has filed for bankruptcy. The miner reportedly nonetheless plans to mine cryptocurrency because it pays off its money owed.

CNBC reported late final evening of the corporate’s determination to file for Chapter 11 chapter safety in Texas early this morning. While this may occasionally sound like an enormous nail within the miner’s coffin, Core Scientific is allegedly nonetheless incomes cash, simply not sufficient to repay its money owed. CNBC says that the corporate has no plans to liquidate, however has reportedly reached a cope with a few of its lenders, who maintain many of the firm’s money owed. Core Scientific mines Bitcoin at its crops in Georgia, Kentucky, North Carolina, North Dakota, and Texas, in accordance with the company’s website.

Core Scientific didn’t instantly return Gizmodo’s request for touch upon the choice to file for chapter or for specifics on the corporate’s plans transferring ahead.

According to an article from CoinDesk, which cites the corporate’s submitting within the Southern District of Texas, Core Scientific holds an estimated $1 billion to $10 billion in liabilities with wherever from 1,000 to five,000 collectors. The miner’s belongings complete wherever from $1 billion to $10 billion.

An earnings report for the quarter ending on September 30 revealed that the corporate’s belongings totaled $1.4 billion whereas its liabilities totaled $1.3 billion. In the meantime, Core Scientific can be coming into a Restructuring Support Agreement with Ad Hoc Noteholder Group, which represents 50% of Core Scientific’s lenders.

The crypto winter is full steam forward—what was as soon as a semi-promising trade earlier this 12 months has continued to flounder. Notably, FTX CEO Sam Bankman-Fried has been arrested and reportedly now again within the United States the place he faces eight felony counts, which embody fraud and cash laundering.