Bitcoin mining company CoreScientific is reportedly filing for Chapter 11 bankruptcy. According to court documents published, the company currently holds around 2,000 unsecured creditors and faces debts of up to $50 million. Its assets are estimated at between $10 and $50 million. CoreScientific’s CEO Kevin Turner cited the COVID-19 pandemic as one of the reasons behind its bankruptcy, saying that a substantial portion of its clients was affected by it.
CoreScientific is currently one of the largest bitcoin mining companies in the United States. The company filed for Chapter 11 bankruptcy, and according to documents published by the court, they hold around 2,000 unsecured creditors and face debts of up to $50 million.
According to reports from public records with the U.S Bankruptcy Court for the District of Montana, Core Scientific filed a voluntary petition citing “insolvency” as well as “willful failure to pay debts when due” among other things.
CoreScientific Files For Bankruptcy
The filing states that their assets are worth between $100 million and $500 million while their liabilities are between $10 million and $50 million at this time; however this last figure could change depending on what happens during discovery hearings over the next few months before any official verdict is reached by Judge Andrew Satterlee III who will oversee this case moving forward.
CoreScientific is one of the largest bitcoin mining companies in the United States. The company was founded in 2018, and it currently operates several bitcoin mining farms in the US. Its headquarters are located in San Francisco, California.
The company’s CEO is Kevin Turner, who also co-founded Semiconductor Engineering Incorporated (SEI), a startup that makes products for semiconductor companies.
According to court documents obtained by Cointelegraph, Core Scientific has between 2,000 and 10,000 unsecured creditors and faces debts amounting up to $50 million. The company’s assets are estimated at between $10 and $50 million.
The documents also show that Mr Turner stated that a substantial portion of its clientele were affected by COVID-19 during its peak period from March through April 2019.