Core Scientific, a significant casualty of the crypto winter experienced by bitcoin miners, has received approval for its Chapter 11 reorganization plans from the Southern District of Texas bankruptcy court. The company anticipates relisting its shares on Nasdaq by the end of this month.
According to the approved reorganization plan, Core Scientific plans to settle its existing debt in full, and current shareholders will be allocated approximately 60% of the new company’s equity, as outlined in a press release.
CEO Adam Sullivan expressed optimism about the company’s future, stating, “Today’s plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success.”
This approval follows the recent closure of the company’s proposed $55 million equity rights offering, marking one of the final steps in Core Scientific’s comprehensive reorganization.
During the peak of the 2021 bull market, Core Scientific held the position of the largest publicly traded bitcoin miner by computing power, managing 143,000 mining rigs as the price of bitcoin soared to over $60,000. However, the company filed for Chapter 11 on December 21, 2022, as the bitcoin price plummeted to around $16,000.
As Core Scientific emerges from bankruptcy, the timing is opportune, with bitcoin’s price rebounding to $43,000. This resurgence is fueled by renewed investor interest following the approval of spot bitcoin exchange-traded funds (ETFs) by the SEC in the U.S. and in anticipation of the upcoming bitcoin halving.
Despite the challenges faced during the crypto winter, Core Scientific aims to maintain its leading position among peers. Their projections include operating 182,000 mining rigs for their own operation in the current year, with plans to scale up to almost 1.1 million rigs by 2027. The company also envisions achieving nearly $600 million in annual revenue by 2024, with potential growth to almost $1 billion by 2027.