Mining company Core Scientific introduced to the Bankruptcy Court an updated restructuring plan calculated until September 2023.
The firm noted that the four-month extension was necessary due to changing market conditions. Among the latter, Core Scientific named:
- increase in the price of bitcoin (by 61% since filing for bankruptcy in December 2022);
- reduction in electricity tariffs (by 24%);
- network hashrate growth (by 54%).
The first two factors had a positive impact on the company’s mining business. The hashprice increased from $0.06/TH/s to $0.08/TH/s, about 30%.
“These conditions have also resulted in the debtor’s liquidity position improving since the date of the petition,” Core Scientific said.
According to the updated plan, the company expects to complete the restructuring with an additional inflow of $46 million. The indicator takes into account the repayment of all the company’s obligations to investors and creditors.
Recall that the latter agreed to lend Core Scientific $37.5 million after filing for insolvency.
In February, the company agreed with investment bank B. Riley to obtain a loan of $70 million on more favorable terms.
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Mining company Core Scientific introduced to the Bankruptcy Court an updated restructuring plan calculated until September 2023.
The firm noted that the four-month extension was necessary due to changing market conditions. Among the latter, Core Scientific named:
- increase in the price of bitcoin (by 61% since filing for bankruptcy in December 2022);
- reduction in electricity tariffs (by 24%);
- network hashrate growth (by 54%).
The first two factors had a positive impact on the company’s mining business. The hashprice increased from $0.06/TH/s to $0.08/TH/s, about 30%.
“These conditions have also resulted in the debtor’s liquidity position improving since the date of the petition,” Core Scientific said.
According to the updated plan, the company expects to complete the restructuring with an additional inflow of $46 million. The indicator takes into account the repayment of all the company’s obligations to investors and creditors.
Recall that the latter agreed to lend Core Scientific $37.5 million after filing for insolvency.
In February, the company agreed with investment bank B. Riley to obtain a loan of $70 million on more favorable terms.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!