Core Scientific, the Bitcoin mining firm that filed for Chapter 11 reorganization in December 2022, is gearing up to exit bankruptcy in the next few days.
In a press release on Tuesday, the firm announced that the bankruptcy court has approved the firm’s reorganization plan, clearing the way for them to re-list shares on the Nasdaq by the end of January 2024.
The Bankruptcy Court has confirmed our Chapter 11 plan of reorganization. The Bankruptcy Court's approval of our plan clears the way for Core Scientific to emerge and re-list on Nasdaq by the end of January 2024!
— Core Scientific (@Core_Scientific) January 16, 2024
Under the terms of the plan, Core’s shareholders will receive shares of the company’s new common stock, representing 60% of the new equity. The news comes on the heels of Core’s oversubscribed $55 million equity rights offering, which was completed earlier this month.
Core CEO Adam Sullivan described the plan’s confirmation as a “defining moment,” noting that the company would emerge from bankruptcy even stronger than before.
“With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale,” said Sullivan.
Core declared bankruptcy when Bitcoin had fallen to a low of $16,000, following a number of crypto firms that either shut down or downsized in light of the crypto winter. Bitcoin is now changing hands at around $43,000 after rising more than 150% over the last year, largely driven by the approval of 11 spot Bitcoin exchange traded funds (ETFs) that began trading last week.
However, a report from CoinShares earlier this week suggested that only a handful of Bitcoin miners could remain profitable after the upcoming Bitcoin halving which is scheduled to take place in March.