U.S. crypto miner Core Scientific files for Chapter 11 bankruptcy, continues to mine Bitcoin

Core Scientific, one of the largest publicly traded crypto mining firms in the U.S. listed on Nasdaq as $CORZ, filed for Chapter 11 bankruptcy protection in the state of Texas on Wednesday morning, according to CNBC.

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Fast facts

• Core Scientific is still generating positive cash flow, but it is insufficient to repay the financing debt for equipment leasing, an unnamed person familiar with the company’s finances told CNBC.
• Instead of liquidating, the company will continue regular mining operations while trying to reach a deal with senior security noteholders, who hold most of the firm’s debt, according to the anonymous source. 
• Core Scientific specializes in mining proof-of-work cryptocurrencies, mainly Bitcoin, which requires costly equipment and an abundant, consistent energy source.
• The company owns approximately 5% of Bitcoin’s global hash rate, according to data from Hashrate Index.
• Bitcoin, the world’s largest cryptocurrency, is currently down around 75% from its all-time high of US$69 in November 2021, trading at US$16,881 at 6:45 p.m. in Hong Kong.
• The loss in Bitcoin’s value and higher energy prices have narrowed profit margins of BTC miners worldwide.

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