Mega Bitcoin Miner Core Scientific Files for Bankruptcy Protection
Posted on 12/21/2022
Core Scientific (CORZ) is one of the largest bitcoin miners by computing power. The crypto miner filed for Chapter 11 at Southern District of Texas bankruptcy court. Core Scientific’s estimated liabilities are between US$ 1 billion to US$ 10 billion, according to the filing. It has around 1,000 to 5,000 creditors, with the largest unsecured claim coming from investment bank B. Riley Financial, Inc. Core Scientific accounts for about 10% of computing power on the bitcoin network, operating 143,000 mining runs and hosting another 100,000.
Earlier, investment bank B. Riley proposed a US$ 72 million financing plan. In late September 2022, Compute North filed for Chapter 11 bankruptcy. Core Scientific currently has approximately $300 million of equipment and other loans (B. Riley’s outstanding loan is US$ 42 million) that have a very short maturity. Core Scientific was running 243,000 machines in its facilities as of the end of October 2022.
Core Scientific went public on January 20, 2022 after merging with Power & Digital Infrastructure Acquisition in a special purpose acquisition company (SPAC) transaction.
