Bankrupt Bitcoin Miner Core Scientific Presents Chapter 11 Plan, Optimistic of Successful Revival
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Ad Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
The troubled US-based Bitcoin (BTC) miner Core Scientific has filed its reorganization plan under Chapter 11 of the US bankruptcy law, and now plans to convert debt to equity for creditors.
The filing was made in the Southern District of Texas on Wednesday, and shows that the mining firm has agreed to a restructuring plan by a group of creditors to convert debt into 97% ownership of the company.
Under the plan, current Core Scientific shareholders would also retain some ownership of the company and thus avoid getting completely wiped out.
The plan would help Core Scientific eliminate debt of hundreds of millions of dollars, which would also drastically cut its annual interest expenses.
The firm said it is “seeking to build as much consensus as possible” in regard to the its new look after the bankruptcy proceedings, and noted that it remains optimistic about a future revival of its business.
The restructuring proposal is still subject to approval by the court.
Plan comes six months after bankruptcy
The reorganization plan is a result of negotiations with key stakeholders, and comes six months after the firm originally filed for bankruptcy protection.
At the time, the mining firm attributed its bankruptcy to a $7 million unpaid debt from bankrupt crypto lender Celsius Network.
It also said it had suffered a net loss of $434.8 million for the three months ending September 30, 2022, and had just $4 million in liquidity at the time of its bankruptcy filing.
Core Scientific shares, which are traded on the over-the-counter (OTC) market under the ticker CORZQ, rose more than 11% on Wednesday, the day the plan was made public.
The surge continued on Thursday, when the stock rose 12%, helped by a generally bullish sentiment in the spot Bitcoin market.
Over the past 12-months, the stock still remains down by 76% to trade at a price of $0.51.

- Trump Appoints PayPal Veteran David Sacks as ‘White House AI and Crypto Czar’
- What’s Happening in Crypto Today? Daily Crypto News Digest
- Trader Explains Why XRP Could Skyrocket to $100 After Tristan Tate X Post
- US SEC Scales Back 50-Member Crypto Enforcement Team: Report
- Michael Saylor Teases “Big Strategy Day,” Crypto Community Reacts






