Bitcoin Mining Firm Core Scientific Stocks Plummet Amid Bankruptcy Rumors

The crypto winter that began in early 2022 has caused several financial problems, including bitcoin mining companies. Many cryptocurrency companies have been struggling, while others have had to close their doors. The crypto community is feeling the impact, primarily through a number of crypto companies, including Celsius Network, Three Arrows Capital, Voyager Digital, and more.

Blockchain and artificial intelligence company Core Scientific is one of the affected companies. While for some other companies a reduction in headcount and a moratorium on exits are required, Core Scientific is currently considering bankruptcy.

Case details

The odds are high that Core Scientific will file for bankruptcy, as the company says it could be underfunded by the end of 2022. However, it said the main reason for the struggle is the current cryptocurrency market crash.

Perhaps, the cryptocurrency crash situation will be resolved, but there are other factors to contend with. An example is the increase in electricity costs. The current consolidation of all the negative events leaves the company in a dilemma.

The company disclosed the information in a filing with the U.S. Securities and Exchange Commission.

Generally speaking, all Bitcoin miners do not have the best experience. Another important factor contributing to the problem, the sources said, was the rise in Bitcoin’s hash rate. Therefore, Bitcoin has a tendency to make more lows as token holders may start considering selling options.

Stocks plummet

Running out of cash is one aspect of the company’s ongoing crisis. As a result, the company’s stock (NASDAQ: CORZ) fell rapidly from recent market observations.

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Shares fell 71% in 24 hours, the data showed. The current price of CORZ stock is $0.20, according to data compiled by Bloomberg. The company can only hope for a quick recovery now.

Core Science Bitcoin Holdings

The total amount of bitcoin held by the company has dropped significantly. As of last September, when the company filed with the SEC, it had about 1,501 bitcoins. As of Thursday, the company’s total BTC holdings stood at $24, with a total funding of $26.6 million.

Currently, the company has outstanding debts that, depending on the circumstances, will not be able to be cleared. In addition, it was unable to pay its equipment suppliers even after the due dates in late October and November.

Bitcoin price rises to $20,500 on + BTCUSDT

At the same time, the company is looking for ways to correct the current crisis. Core Scientific is considering restructuring its finances, hiring strategic advisors and raising additional capital.

Featured image from Pixabay, chart from Tradingview

Source of information: Compiled from NEWSBTC by 0x Information.The copyright belongs to the author and may not be reproduced without permission

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