Bitcoin miner Core Scientific to resume trading on Nasdaq after reorganization
The company said in a Tuesday statement that its restructuring plan allowed it to cut $400 million in debt by converting equipment lender and convertible note holder debt into equity.
Core Scientific said its plan could also further reduce its debt through the conversion of remaining convertible debt, investors’ exercise of applicable warrants, as well as the use of available cash to pay down debt.
“We are poised to execute our pragmatic growth plan, continue preparing for the coming halving and create value by transforming energy into high value compute for bitcoin mining and other potential applications,” Adam Sullivan, chief executive officer of Core Scientific, said in the press release.
Core Scientific, which operates mining facilities with 724 megawatts of power in five U.S. states, plans to increase the total mining capacity by over 50% in the next four years as it intends to deploy new bitcoin miners.
In December 2022, the company filed for Chapter 11 bankruptcy protection following crypto price slumps and a series of market failures. Major creditors included BlackRock and investment bank B. Riley.
The stocks of bitcoin miners Marathon Digital and Riot Platforms fell this month following the bitcoin volatility after the U.S. approved multiple spot bitcoin exchange-traded funds on Jan. 10. Marathon Digital's stock lost 29.74% from the beginning of this month, and Riot Platforms dropped 32.6% during the same period.
