Bitcoin News- Nasdaq-traded shares of the company dropped by 70% immediately after the news broke.
- The miner said Celsius’s refusal to pay was costing it almost $53,000 per day.
Core Scientific, one of the largest Bitcoin miners in the world, has warned that it may have to file for bankruptcy due to the high operating costs and other difficulties in the business. Thursday morning, the business released a letter to shareholders explaining that it was considering a variety of strategic alternatives and would not be making any payments on debts due over the next several days.
Substantial doubt arises about the Company’s ability to continue as a going concern for a reasonable amount of time due to the uncertainties surrounding the Company’s financial status. Nasdaq-traded shares of the company dropped by 70% immediately after the news broke.
Struggle Continues For the Firm
According to court records issued earlier this month, bankrupt cryptocurrency lender Celsius owes Core millions of dollars in unpaid power costs. In its court complaint, the miner said Celsius’s refusal to pay was costing it almost $53,000 per day.
According to Core Scientific,
It has been “severely impacted by the prolonged decrease in the price of bitcoin, the increase in electricity costs, the increase in the global bitcoin network hash rate and the litigation with Celsius.”
Core had 1,051 BTC ($21.6 million at today’s pricing) and $29.5 million in the bank as of September 30; as of Wednesday, it only had 24 BTC (a little under $495,000 at today’s values).
The company has had to sell off more Bitcoin than it mined in recent months in order to cover expenses, so the quantity it has on hand has decreased significantly. To strengthen its financial position, the business unloaded almost 7,000 BTC in July.
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Source: https://thenewscrypto.com/bitcoin-mining-firm-core-scientific-likely-to-file-for-bankruptcy/