Core Scientific Emerges From Chapter 11
Bitcoin miner Core Scientific has successfully completed its reorganization and is now emerging from Chapter 11 with a stronger financial position. The company has announced its intention to list its common stock and warrants on the Nasdaq Global Select Market starting January 24, 2024.
The reorganization plan involved converting debt into equity, resulting in a $400 million reduction in Core Scientific’s debt. This move has improved the company’s financial standing and sets the stage for further balance sheet deleveraging. The plan also outlines strategies for converting remaining convertible debt, exercising warrants for cash, and using cash to repay debt.
With a new credit facility and anticipated operating cash flow, Core Scientific is confident in executing its multi-year growth plan.
Core Scientific Plans 50% Capacity Increase in 4 Years
Following its recent approval from the United States Bankruptcy Court, Core Scientific aims to relist on Nasdaq by the end of 2024. In 2023, the company generated 13,762 bitcoins through its own miners and an additional 5,512 BTC through hosting customers who share proceeds with the company.
To further expand its operations, Core Scientific is currently deploying new bitcoin miners and expects to have approximately 27,000 Bitmain S19 XP miners and 12,000 Bitmain S21 miners by mid-2024. With plans to increase capacity by over 50% in the next four years, Core Scientific aims to achieve this expansion at a significantly lower cost per megawatt compared to new construction.
Hot Take: Core Scientific’s Strong Reemergence
After successfully completing its reorganization process and reducing its debt significantly, Core Scientific is now poised for growth. By converting debt into equity and outlining strategies for further deleveraging, the company has strengthened its financial position. With plans to list on Nasdaq and increase its mining capacity, Core Scientific is positioning itself as a major player in the bitcoin mining industry. With a focus on transforming energy into high-value compute for mining and other applications, Core Scientific is well-positioned to create value and achieve success in the coming years.
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