Core Scientific Emerges from Chapter 11 Restructuring with Improved Financial Position

Core Scientific Emerges from Chapter 11 Restructuring with Improved Financial Position

Bitcoin mining company Core Scientific has successfully completed its reorganization and is now emerging from Chapter 11 with a stronger financial standing. The company has announced its plans to list its common stock, tranche 1 warrants, and tranche 2 warrants on the Nasdaq Global Select Market under the symbols CORZ, CORZW, and CORZZ, respectively, starting from January 24, 2024.

Core Scientific’s reorganization plan has resulted in a significant $400 million reduction in its debt. This achievement was made possible by converting debt from equipment lenders and convertible note holders into equity. By taking this step, the company has not only strengthened its financial position but also set a course for further deleveraging its balance sheet.

The reorganization plan outlined a clear strategy for reducing the balance sheet even further. In addition to the debt conversion already undertaken, Core Scientific plans to convert the remaining convertible debt, exercise warrants for cash, and use its available cash to repay debt. This comprehensive approach will help the company achieve its goal of becoming financially stable and minimizing financial risks going forward.

With a newly secured credit facility and anticipated operating cash flow, Core Scientific is confident in its ability to successfully execute its multi-year growth plan. Adam Sullivan, the company’s Chief Executive Officer, expressed his optimism, stating that Core Scientific has maintained its position as one of the largest and most influential bitcoin miners in North America throughout the reorganization process. Moving forward, Core Scientific aims to leverage its strong team and resources to create value by transforming energy into high-value compute for bitcoin mining and other potential applications.

Last week, Core Scientific received approval from the United States Bankruptcy Court for the Southern District of Texas to emerge from Chapter 11 and relist on Nasdaq by the end of 2024. This development further strengthens the company’s position and opens up new opportunities for growth and investment.

In 2023 alone, Core Scientific generated 13,762 bitcoins using its fleet of miners, in addition to an extra 5,512 BTC for hosting customers, with whom the company shares proceeds. The company is currently in the process of deploying around 27,000 new Bitmain S19 XP bitcoin miners and plans to deploy approximately 12,000 Bitmain S21 bitcoin miners by mid-2024. With its two Texas data centers possessing 372 megawatts of partially developed infrastructure, Core Scientific aims to increase its capacity by over 50% in the next four years. Moreover, the company expects to achieve this expansion at a significantly lower cost per megawatt compared to constructing new facilities.

Core Scientific’s successful emergence from Chapter 11 restructuring marks a significant milestone for the company. With its improved financial position and a clear strategy for debt reduction, Core Scientific is well-positioned for future growth and success in the rapidly evolving bitcoin mining industry. By leveraging its resources, strong team, and commitment to innovation, Core Scientific aims to continue leading the way in North America and creating value for its stakeholders.


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