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Bitcoin Miner Core Scientific Overcomes Bankruptcy, Eyes Stock Market Return

The prominent U.S.-based Bitcoin mining firm, Core Scientific, has successfully emerged from bankruptcy and is now gearing up for a return to the stock market.

The Chapter 11 reorganization plan of Core Scientific has received confirmation from the United States Bankruptcy Court for the Southern District of Texas. This significant development clears the path for the company to recommence its regular operations and relist its shares on the Nasdaq stock exchange. According to an announcement made on Tuesday, Core Scientific’s stock is anticipated to be available on the market once again “by the end of January 2024.”

Existing shareholders to get 60% of new equity

The approved plan outlines that shareholders, effective from the expected record date of January 23, 2024, will be receiving shares of the company’s new common stock and warrants, constituting approximately 60% of the new equity.

Assuming that applicable warrants are cash-exercised and the funds are utilized to pay down debts, this strategic move will lead to the complete settlement of the company’s existing debt. As a result, the firm will reduce its debt burden by roughly $1 billion before implementing the plan.

The announcement confirming the approval of the miner’s restructuring plan follows the firm’s statement in December, where it mentioned that it had “reached an agreement in principle” with all major stakeholders regarding the terms of its restructuring.

Core Scientific’s CEO, Adam Sullivan, expressed confidence in the company’s future in a statement, highlighting the alignment for success and the dedication of the team.

Sullivan stated:

“With the increasing demand for Bitcoin and high-value computing, we eagerly anticipate generating value for our shareholders as we execute our growth strategy, improve our financial position, and deliver superior efficiency at scale.”

Throughout the bankruptcy process, the legal counsel for Core Scientific was provided by the law firm Gotshal & Manges LLP. Additionally, PJT Partners LP served as the investment banker in this endeavor.

Core Scientific Partners with Bitmain

Back in October of the previous year, Core Scientific made a significant announcement about a new partnership with Bitmain, the world’s largest manufacturer of Bitcoin mining machines.

As a key component of this partnership, Bitmain committed to investing $53.9 million in Core Scientific, further strengthening the enduring collaboration between the two companies.

In 2023, Core Scientific successfully mined a total of 13,762 BTC for its own portfolio. The company achieved this using an impressive fleet of approximately 158,000 self-owned Bitcoin mining machines, as disclosed in its annual report.

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