A plan for a complete overhaul could be for bankrupt Bitcoin miner Core Scientific, and this would be finalized by September. The company further expects the exit proceedings to net them an additional $46 million due to favorable conditions in the market.
In a filing on 22nd May in a Texas Bankruptcy court, the lawyers of the company mentioned that its liquidity position had improved quite a lot since it had filed for bankruptcy and as a result, it planned on filing a reorganization plan shortly. The plan was currently being negotiated with the key stakeholders, and according to this filing, the firm was seeking to create as much consensus as possible, about how a new company would look as it emerged from the bankruptcy proceedings.
Core Scientific Looking Towards Filing For Bankruptcy
A Chapter 11 bankruptcy does allow Core Scientific to continue operating until the stakeholders can agree on a restructuring plan which would allow for several measures such as the downsizing of business operations to reduce the debt or the liquidation of assets to repay the creditors. The firm firmly pointed towards decreasing power costs, increasing the price of Bitcoin, and an increase in the hash rate of the blockchain as one of the primary market factors that would contribute towards liquidity boost.
On 21st December 2022, when Core Scientific filed for bankruptcy, the price of Bitcoin was around $16,904, according to CoinMarketCap. Since then, the price has gone up by around 60%, as it now sits at around $27,000. Additionally, the power prices have also gone down by 24% since the date of the petition according to the filing, while the hash rate of the network jumped by 54%