Crypto Miner Core Scientific Files for Bankruptcy 

Crypto Miner Core Scientific Files for Bankruptcy 

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As crypto firms continue to face insolvency issues, the US leading Bitcoin mining firm Core Scientific filed for Chapter 11 bankruptcy on Wednesday as a protective mechanism against creditors.

According to the firm, the decision followed “a comprehensive review of potential alternatives and exhaustive discussions with various company stakeholders.”

The firm is expected to seek restructuring support from Ad Hoc Noteholder Group which represents over 50% of the holders of its convertible notes.

“The filing of these cases was necessitated by a decline in the Company’s operating performance and liquidity suffering from the prolonged decrease in the price of bitcoin, the increase in electricity costs necessary to power the Company’s data centers, and the failure by certain of its hosting customers to honor their payment obligations,” per the statement. “In response to these factors, the Company has actively taken steps to decrease monthly costs, delay construction expenses, reduce and delay capital expenditures and increase hosting profitability.”

Core Scientific said it is “committed to operating normally” as it moves “swiftly through the process” of restructuring.

“During this process and upon emergence, the Company will continue to operate its existing self-mining and hosting operations, which remain significantly cash flow positive on a debt-free basis,” according to the statement. “The Company remains dedicated to providing hosting services and self-mining in its state-of-the-art data centers.”

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Angela James
Angela James
1 year ago

The IRS will audit Cryptocurrency, get help NOW The IRS views crypto as property, not currency, which means that mining, selling, exchanging, or spending your coins are all taxable events that you need to report. Cryptocurrency and Bitcoin taxes are a tricky field to navigate. Even today, IRS guidance remains quite vague, and many CPAs don’t know how to properly file crypto taxes. However, despite confusing or unclear guidelines, the IRS has made it very clear they want you to report your crypto. However, we have professional crypto finntech engineers who can help bypass all of that with your new or existing investment.
cryptotaxconsult @ proton .me

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