Publicly traded crypto miner Core Scientific files for Chapter 11 bankruptcy

Core Scientific, one of the world’s largest publicly traded bitcoin miners, filed for Chapter 11 bankruptcy protection as this year’s slump in crypto prices claimed another victim.

The company estimated its assets and liabilities at between $1 billion and $10 billion, according to the filing with the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday.

Bitcoin miners have suffered significant falls in revenue this year as crypto prices fell. Mining revenues sank by 20% in November, with the price of bitcoin hovering below $17,000 for a good portion of the month.

Core Scientific estimated it had between 1,000 and 5,000 creditors, with $42.4 million owed to its largest creditor, financial services firm B. Riley. As recently as last week, B. Riley had argued that bankruptcy is not the answer to Core Scientific’s problems and proposed $72 million in fresh funding. 

Insufficient cash flow

While Core Scientific is still generating positive cash flow, it’s not enough to repay debt owed on the Bitcoin mining equipment it leases, CNBC reported earlier, citing a person familiar with the situation.

The company’s shares had fallen 29% in pre-market trading as of 5 a.m. ET. 

The case is number: 22-90342.

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