Leaderboard 728×90
Leaderboard 728×90

Interpretation: Why is Core Scientific, the largest bitcoin miner in North America, on the verge of bankruptcy?

Core Science, one of the largest publicly traded crypto mining companies in the U.S. with a purported 457 MW of operations, filed a statement with the SEC last week saying it had the potential for bankruptcy in the future, and the company also revealed that it would not pay debt maturing in late October and early November, and its share price plunged 77% in response, further extending the endgame facing Core.

Why is Core Scientific (“Core”), North America’s largest miner, on the verge of bankruptcy today? Let’s start with history and explore why.

News source: Shares of CoinDesk’s troubled bitcoin miner Core Scientific continue to plummet on the risk of bankruptcy

Historical introduction

Core has been operating mines in North America since 2017, digging and providing hosting services as well as digging itself. Core has mines in Georgia, Kentucky, North Carolina, North Dakota and Texas, and expects to begin operations in Oklahoma in the coming quarters.

Core is very secretive and rarely makes trading details public to the market. At the start of 2018, a document revealed that the startup was raising a $40 million investment round, and three months later, it was discovered that founder Aber Whitcomb was raising a large investment of $100 million, which could grow to $250 million, but he declined to provide details on how it would be used.

In July 2021, Core announced a merger with Power & Digital Infrastructure Acquisition (XPDI) to list on NASDAQ with a corporate valuation of approximately $4.3 billion. Previously, Core purchased 76,595 and 112,800 Bitmain miners in 2020 and 2021, respectively, all for next-generation miners such as the S19, S19 Pro, S19J and S19J Pro. Bull market support, holding these mining assets continues to push up Core’s market valuation.

Source: Core Scientific, at its Marble facility in North Carolina

Following an agreement between Core and a subsidiary of privately held independent energy company Tenaska Energy, Inc., Core will build a 300 MW data center in Denton, Texas, with Core committing…

..

Read More

About The Author

Related posts