• September 29, 2023


All the latest cryptocurrency news

Cryptocurrency Mining Firm Core Scientific to File for Bankruptcy

ByLouis Adams

Dec 21, 2022 #mining
Reading time: < 1 minute

Mining company Core Scientific will file for insolvency under Chapter 11 of the US Bankruptcy Code.

According to the CNBC, despite the fact that the company is still generating positive cash flow, these funds are not enough to pay off the debt for the leased equipment.

Core Scientific does not intend to launch a liquidation process following the filing for bankruptcy, as the company expects to continue its operations until reaching an agreement with the main creditors.

Core Scientific warned in October of a possible depletion of cash reserves and cash equivalents before the end of 2022 because of the fall in the price of Bitcoin, the increase in electricity tariffs and the increase in hash rate.