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Shaking off bankruptcy shadows! Mining company Core Scientific's restructuring plan approved, set to relist on Nasdaq by the end of January.

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Shaking off bankruptcy shadows! Mining company Core Scientific

As one of the former largest publicly traded cryptocurrency mining companies in the United States, Core Scientific announced yesterday that its restructuring plan, which lasted over 13 months, has been approved by the U.S. bankruptcy court. The company is expected to emerge from bankruptcy on January 23 and will relist on the Nasdaq under the ticker symbol "CORZ" the following day.

Core Scientific Emerges from Bankruptcy Process

The cryptocurrency mining company, Core Scientific, announced in the early hours of today that the Southern District of Texas Bankruptcy Court has confirmed and approved the company's proposed reorganization plan.

The official statement indicates that the company will fully repay existing financing debts of up to $1 billion, and existing shareholders will receive subscription warrants to approximately 60% of the new company on January 23. The company will also retain over 240 job opportunities.

Furthermore, Core Scientific will relist on Nasdaq the following day under the stock symbol "CORZ."

A few days ago, the company also announced the completion of a $55 million oversubscribed equity rights offering, seen as one of the final steps in the mining company's restructuring:

Core Scientific has reached a preliminary agreement with all key stakeholders on settlement terms.

Judge Christopher Lopez expressed satisfaction with the plan during a hearing, stating that the plan provides significant funding for unsecured creditors and shareholders.

After a 13-month restructuring process, Core Scientific CEO Adam Sullivan commented:

With the continued demand for Bitcoin and high-capacity computing, we look forward to creating value for shareholders in executing growth plans, deleveraging the balance sheet, and scaling efficiency.

He added, "We are poised to emerge as a stronger company by the end of this month."

Core Scientific Aims for $1 Billion Revenue by 2027

Prior to the peak of the bull market in 2021, Core Scientific was one of the world's largest publicly traded Bitcoin miners, operating 143,000 mining machines, as reported.

However, in December 2022, Core Scientific faced operational challenges due to a sluggish crypto market, rising energy prices, and increased mining difficulty. At that time, the company filed for bankruptcy protection, stating it would not liquidate but continue operations to gradually repay lease and financing debts.

It is understood that in 2023, Core Scientific operated around 209,000 self-owned and hosted Bitcoin mining machines, producing a total of 13,762 Bitcoins that year, with a total hashrate reaching 23.2 EH/s.

Now, with the crypto market rebounding, the company has successfully emerged from bankruptcy and through a report claims to increase its mining machine count to 1.1 million by 2027, with a revenue target of $1 billion for that year.

On the other hand, Compute North, another Bitcoin mining company that applied for bankruptcy protection in 2022 due to the bear market, has not provided further updates.