Bitcoin Mining News: Core Scientific Filed For Bankruptcy

Core Scientific was among leading crypto miners in the crypto industry.
The mining firm reportedly has 51-200 employees.

Core Scientific, a global crypto mining company, filed for bankruptcy on Wednesday morning. The move comes after a long year of falling cryptocurrency prices while rising energy prices.

According to a person familiar with the company’s finances, the largest publicly traded crypto mining company in the U.S. filed for Chapter 11 bankruptcy protection in Texas.

Core Scientific is known to mine Bitcoin-like Proof-of-Work (PoW) cryptocurrencies. The mining of PoW based crypto is one of the expensive consensus given the equipment used in the process requires massive amounts of energy, and are expensive.

Since the beginning of this year, energy prices have been hiked several times owing to the Russia Ukraine war and a bleak global macroeconomic outlook, and the continuous decline in prices since November 2021 has troubled the crypto miners the most.

For the whole year, energy prices were on increase while the crypto asset prices were decreasing making it hard for crypto miners to sustain and continue operations.

At the time of writing, Core Scientific (NASDAQ: CORZ) stock price had descended by 99.52% in one year.

Core Scientific crypto mining firm has its headquarters in Austin, Texas.

The information comes from a Securities and Exchange Commission (SEC) filing regarding Core Scientific, which was filed on October 26th of this year. Core Scientific explained that it will not be capable of honoring loan agreements for October and at the beginning of November.

Bitcoin miners are facing difficulties as the value of bitcoin (BTC) has slipped almost 70% against the U.S. dollar in the past year. Adding to this, the issues faced by the network miners are at an all-time high this time.

As per TradingView, following the revenue of Core Scientific of Q3 2021, the crypto miner’s estimated revenue was around 121.25 Million U.S. dollars, while the reported revenue was around 112.52 Million U.S. dollars or a difference of -7.20%.

The reported revenue of the crypto mining firm surpassed the estimated revenue of Q4 2021, and it was the highest positive increase of 46.69% in the last few quarters.

CORZ stock has lost more than 99% in the last one year from its all-time high. Currently the stock price is below $1, which was the key defending zone of bulls. The RSI indicator shows more decline ahead in the upcoming days.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing