Core Scientific, one of the largest Bitcoin mining companies in the United States, has announced it will emerge from bankruptcy proceedings next month. In a statement made on December 21st, the company revealed a principle agreement with shareholders for the distribution of convertible bonds and stocks, with plans to re-list on the NASDAQ by mid-January 2024.
CEO Adam Sullivan expressed excitement about the company’s return to services and outlined a post-exit strategy to lift the balance sheet limit and a plan for sustained growth beyond 2024. The agreement will provide Core Scientific shareholders with new shares at a 25:1 ratio, ensuring $1.08 per share before the exchange.
Shareholders will receive $1.62 for each dollar of nominal value for convertible bonds maturing in April and $1.20 for those maturing in August. Core Scientific went public in July 2021 through a $4.3 billion SPAC deal, with shares initially trading at $10. However, a downturn in the crypto market, rising energy costs, increased mining difficulty, and debt to crypto firm Celsius led to the company’s bankruptcy in December 2022.
Prior reports in crypto media indicated that Core Scientific would inherit $709 million in net debt and $791 million in shareholder equity after the plan’s implementation in January. By 2025, only $46 million of the debt will be due. During the bankruptcy, Core Scientific signed a $77 million cash and stock deal with ASIC manufacturer Bitmain for 27,000 mining rigs.
Currently, the firm owns over 199,000 ASICs and mines approximately 32 Bitcoins per day. Crypto mining companies are ramping up investments, particularly in anticipation of the Bitcoin Halving event scheduled for April.