Bitcoin miner Core Scientific to exit bankruptcy, relist shares in ‘coming days’

    2024.01.17 | exchangesranking | 251onlookers

    Crypto mining firm Core Scientific has been given court approval to emerge from bankruptcy and relist its “CORZ” shares on the Nasdaq — putting an end to a 13-month restructuring process. 

    In a Jan. 16 statement, Core Scientific said its plan of reorganization had been confirmed by the bankruptcy court for the Southern District of Texas. The firm is targeting an emergence date of Jan. 23 and anticipates being relisted on the Nasdaq the following day.

    Under the terms of the Chapter 11 plan, existing shareholders will retain around 60% of the company’s shares. The restructuring plan would also trim millions in debt from its balance sheet and provide “full recovery” to all classes of creditors.

    U.S. Bankruptcy Judge Christopher Lopez reportedly said in a hearing that the plan “provides a tremendous recovery for both unsecured creditors and also equity holders.”

    The plan is also expected to preserve more than 240 jobs at the company.

    “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,” said Core Scientific CEO Adam Sullivan.

    “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.”

    Related: Bitcoin miner Core Scientific completes $55M equity offering

    Core Scientific is one of the United States’ largest crypto miners, producing over 13,700 self-mined Bitcoin (BTC) and 5,500 BTC from co-located miners in 2023.

    However, a combination of a prolonged bear market, rising energy prices, increased mining difficulty, and bad debt lent to crypto firm Celsius saw the firm file for bankruptcy in December 2022. It had previously traded on the Nasdaq Global Select Market under the symbol “CORZ” but was delisted after bankruptcy proceedings began.

    Core Scientific said the restructuring plan has been possible due in part to a “substantial increase” in the price of Bitcoin and hash prices in the time since it filed bankruptcy in December 2022.

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