One of the largest bitcoin miners – Core Scientific – could run out of cash by the end of 2022, which could prompt it to file for bankruptcy.
The firm’s shares took a major punch following the news. Current market data shows they trade at around $0.28, an approximately 72% decline compared to yesterday’s figures.
The market decline, the rise in energy costs, and increased competition are the main factors that have negatively impacted the entity’s performance and liquidity.
Core Scientific stated it will postpone its payments in October and early November “with respect to several of its equipment and other financings, including its two bridge promissory notes.”
The company has been actively exploring alternatives and hired several professionals to help with its issues. However, there is a real chance it could run out of funds by the year’s end and seek bankruptcy protection:
“Substantial doubt exists about the company’s ability to continue as a going concern for a reasonable period of time.”
Currently, the miner holds 24 BTC and has around $26.6 million in cash. In comparison, it owned 1,051 BTC and $29.5 million last month.
Core Scientific entered NASDAQ through an estimated $4.3 billion merger with Power & Digital Infrastructure Acquisition Corporation earlier this year.
At the moment of writing these lines, the shares hover about $0.28, a considerable 72% plunge compared to the prices 24 hours ago.
Another crypto miner that struggles with the same problems is the Texas-based Compute North. It filed for Chapter 11 bankruptcy last month after revealing it owes approximately $500 million to at least 200 creditors.
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