Things aren’t looking that great for Core Scientific (Core Scientific Stock Quote, Chart, News, Analysts, Financials OTCBB:CORZQ) but its management team said it is working towards “emergence” by the end of this year.
On October 30, the Austin-based Bitcoin miner company agreed with its Ad Hoc Noteholder Group and the Equity Committee regarding the terms of a chapter 11 plan of reorganization.
“The agreement in principle is subject to the finalization of the Debtors’ Third Amended Joint Chapter 11 Plan of Reorganization of Core Scientific, Inc. and its Debtor Affiliates and a related Disclosure Statement, and the execution of a restructuring support agreement (the “Restructuring Support Agreement”) and other definitive documentation, which the Debtors expect to enter into with the Ad Hoc Noteholder Group and the Equity Committee in the coming days,” the company said in a press release. “The Restructuring Support Agreement, if and when executed by the Debtors, the Ad Hoc Noteholder Group and the Equity Committee, is expected to include terms consistent with those terms set forth in the Restructuring Term Sheet.”
CORZQ filed for bankruptcy in late December, citing falling prices for Bitcoin, rising costs to produce it and debt owed to lender Celsius Networks.
Shares of the company have not traded since then, exchanging hands at $0.0751 the last time it did trade.
A glimmer of hope, however may come in the form of soaring prices for Bitcoin in 2023 and a recent peer investment.
In September, however, Core Scientific announced a $53.9-million investment from Bitmain.
““We look forward to deepening our strategic relationship with Core Scientific, our long-standing U.S.-based partner,” said Bitmain CEO Max Hua. “Their professionalism, integrity, and commitment to the success of their hosting customers and to the growth of the Bitcoin Network is unsurpassed in the industry.
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