Bitcoin Miner Core Scientific Emerges from Bankruptcy, Plans Stock Market Return
The major US-based Bitcoin miner Core Scientific has successfully emerged from bankruptcy and is now preparing to return to the stock market. The United States Bankruptcy Court for the Southern District of Texas has confirmed Core Scientific’s Chapter 11 plan of reorganization, allowing the company to resume normal operations and re-list its shares on the Nasdaq stock exchange. According to an announcement, Core Scientific stock is expected to be available on the market by the end of January 2024.
Existing Shareholders to Receive Majority of New Equity
The approved plan states that shareholders as of January 23, 2024, will receive shares of Core Scientific’s new common stock and warrants, accounting for approximately 60% of the new equity. By utilizing cash from applicable warrants and funds to pay down debt, the company will be able to fully repay its existing debt, reducing its balance by around $1 billion prior to implementing the plan.
Confidence in Future Success
Core Scientific’s CEO, Adam Sullivan, expressed confidence in the company’s future and highlighted the alignment for success and motivation within the team. Sullivan emphasized that with increasing demand for Bitcoin and high-value compute, Core Scientific aims to create value for shareholders by executing its growth plan, reducing its debt, and achieving superior efficiency at scale.
Partnership with Bitmain
In October last year, Core Scientific announced a partnership with Bitmain, the world’s largest manufacturer of Bitcoin mining machines. As part of this collaboration, Bitmain invested $53.9 million in Core Scientific. The company already operates approximately 158,000 self-owned Bitcoin mining machines and mined 13,762 BTC in 2023.
Hot Take: Core Scientific Bounces Back and Sets Sights on Market Return
Core Scientific’s successful emergence from bankruptcy marks a significant milestone for the US-based Bitcoin miner. With plans to return to the stock market, the company aims to capitalize on the growing demand for Bitcoin and high-value compute. By reducing its debt and achieving greater efficiency at scale, Core Scientific is positioning itself for future success. Furthermore, its partnership with Bitmain provides additional support and investment in its operations. As Core Scientific prepares to relist its shares on the Nasdaq stock exchange, it signals a positive outlook for the company and the broader crypto industry.
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