The Mining Company Core Scientific Is Returning To The Markets.

Crypto mining company Core Scientific will conclude its 13-month restructuring process by completing the bankruptcy proceedings on January 23rd.

Crypto mining firm Core Scientific is set to conclude its bankruptcy process and plans to relist its "CORZ" shares on Nasdaq after receiving court approval. The company's restructuring plan has been approved by the Texas bankruptcy court, and Core Scientific aims to relist on Nasdaq on January 24th.

The Bankruptcy Court has confirmed our Chapter 11 plan of reorganization. The Bankruptcy Court's approval of our plan clears the way for Core Scientific to emerge and re-list on Nasdaq by the end of January 2024!

Read the full press release here: https://t.co/9pvy6hKOrP pic.twitter.com/3rnKjG1TBv

— Core Scientific (@Core_Scientific) January 16, 2024

In accordance with Chapter 11 terms, existing shareholders will retain approximately 60% of the company's shares. The restructuring plan will also reduce millions of dollars in debt on the balance sheet, providing "recovery" for all creditor classes. US Bankruptcy Judge Christopher Lopez reportedly stated during the hearing that the plan "provides tremendous recovery for both unsecured creditors and equity holders." The plan is expected to safeguard over 240 employees in the company.

A U.S. #BTC mining company, @Core_Scientific has gained approval from a bankruptcy judge for its Chapter 11 restructuring.

This move allows the firm to eliminate $400 million in debt and aims to emerge from bankruptcy by the end of January.

The judge praised the plan for…

— Anthony P⭕️wer (@cazenove_uk) January 16, 2024

Core Scientific CEO Adam Sullivan expressed his eagerness after today's plan approval, stating, "Today's plan approval was crucial for our restructuring. We are ready to come back at the end of this month as a stronger company with a successful and highly motivated team:

"As the demand for Bitcoin and high-value computing tools continues to rise, and as we implement our growth plan, we eagerly anticipate creating value for our shareholders by continually boosting our balance sheet and delivering superior efficiency."

Core Scientific became one of the largest crypto miners in the United States, producing 13,700 BTC on its own and 5,500 BTC through joint miners in 2023. However, the prolonged bear market, rising energy prices, increased mining difficulty, and the accumulation of debt to the struggling crypto firm Celsius led to Core Scientific filing for bankruptcy in December 2022. The company was trading under the symbol "CORZ" on the Nasdaq Global Select Market, but it was delisted after the bankruptcy proceedings began.

Core Scientific emphasized that the significant increase in Bitcoin and hash prices since filing for bankruptcy in December 2022 made the restructuring plan possible.

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