- The company plans to relist its shares on Nasdaq by the end of January
- Core expects to operate 182,000 mining rigs this year; almost 1.1 million by 2027
- It anticipates annual revenue of $600 million in 2024
A Southern District of Texas bankruptcy court approved Core Scientific’s Chapter 11 reorganization plans after the Bitcoin miner declared insolvency in the midst of crypto winter, CoinDesk reported. The company plans to relist its shares on Nasdaq by the end of January.
Current shareholders get 60% equity
Core Scientific will pay off all of its current debt under the reorganization plan, and its existing shareholders will get about 60% of its equity according to a press release cited by CoinDesk. In the release, Core Scientific CEO Adam Sullivan said:
Today’s plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success.
The bankruptcy plan was approved after Core closed its proposed $55 million equity rights proposal earlier in January. This was one of the last steps for the company to finish its reorganization.
The glory days
Core was the biggest publicly traded Bitcoin miner by hash rate (computing power) and operated 143,000 mining rigs at the peak of the crypto bull market in 2021, when Bitcoin was trading above $60,000 per unit. The world’s oldest crypto had plummeted to around $16,000 when Core filed for Chapter 11 at the end of 2022.
Slow recovery
In August 2023, Bitmain and Anchorage Digital announced plans to obtain equity stakes in the bankrupt Bitcoin miner. Bitman is the world’s biggest Bitcoin mining rig manufacturer.
Core is emerging from bankruptcy against the backdrop of rising Bitcoin prices. Its recovery is facilitated by positive developments such as the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the US and the Bitcoin halving, expected in April 2024.
Hopes for the future
Core expects to operate 182,000 mining rigs this year and almost 1.1 million by 2027. It also anticipates annual revenue of $600 million in 2024 and as much as $1 billion by 2027.
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