Cryptocurrency 19 minutes ago (Dec 21, 2022 01:00PM ET)
Core Scientific Files for Chapter 11 Amid Crypto Winter
- Core Scientific is filing for Chapter 11 bankruptcy in Texas.
- The crypto-mining company’s market capitalization had fallen to $78M on Tuesday.
- Core Scientific is still generating positive cash flow, but not enough to pay back the debt.
With the effects of the harsh winter crypto season rising, share prices of bitcoin mining
companies are still below BTC. Core Scientific, one of the largest crypto-mining companies, is filing for Chapter 11 bankruptcy in Texas.
According to a report by CNBC, Core Scientific’s market capitalization had fallen to $78 million on Tuesday, and the stock price of CORZ fell more than 98% last year.
The crypto-mining company is still generating positive cash flow, but not enough to pay back the debt, according to the report. Crypto-mining requires expensive equipment, technical knowledge, and a lot of electricity, which implies the cause of its rising debts.
In October, Core Scientific sent a statement to the Securities and Exchange Commission (SEC) questioning the possibility of bankruptcy. At that time, the company claimed that it would be difficult for them to make payments in late October and early November.
With the crypto winter causing more dam …
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