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World’s largest Bitcoin mining firm Core Scientific on the verge of insolvency

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core scientificone of the largest publicly traded companies in the world Bitcoin The mining company is on the brink of bankruptcy.

The company said in an SEC filing on Oct. 26 that its performance and liquidity were severely impacted by rising electricity prices and falling Bitcoin prices.

Rising hashrate has severely compromised the company’s ability to mine BTC, further affected by an ongoing lawsuit with Celsius.

As of October 26, the company has just 24 BTC and about $26.6 million in cash. This contrasts with his September, which was over 1,000 BTC and $29.5 million in cash.

among them 8K filingthe company said its board decided not to make payments in late October and early November.

Core Scientific said it is exploring several potential strategies to resolve the bankruptcy issue. These strategies include hiring additional strategic advisors, raising additional capital, and restructuring existing capital structures. We also consider debt management transactions, such as exchanging current debt for equity. Bankruptcy remains a viable option, the company said in its filing.

“In the event of bankruptcy proceedings, bankruptcy, or restructuring of our capital structure, holders of our common stock could suffer a complete loss of their investment.”

It said it was difficult to estimate total liquidity requirements, but expected that existing cash resources could be exhausted by the end of 2022.

“Given the uncertainty regarding the company’s financial condition, there is considerable doubt as to whether the company can continue as a going concern for a reasonable period of time.”

out of all Listed Bitcoin Mining Company Core Scientific’s share price fell the most on the market. Data analyzed by CryptoSlate showed that CORZ has lost more than 90% of its value since the beginning of the year. What the Bitcoin Mining Market as a Whole Has Experienced While Core Scientific Leads as the Biggest Loser serious loss Because they are struggling with rising electricity bills and rising hashrates.

bitcoin mining company
Graph showing stock prices of listed Bitcoin mining companies (Source: CryptoSlate)
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