Core Scientific explains its latest bankruptcy plan ahead of court date


Bitcoin (BTC) miner Core Scientific has released a presentation outlining its plans to emerge from bankruptcy in early January 2024. The presentation is based on the third amended joint Chapter 11 plan filed on Nov. 16 and includes an audio commentary by CEO Adam Sullivan.

Common shareholders and holders of two series of convertible notes are being planned for separately. Common shareholders will receive new shares exchanged at a ratio of 25:1, to provide them with $1.08 per pre-exchange share.

How To Get Free Crypto  

Planned Core Scientific indicators through 2027. Source: Core Scientific

Noteholders will receive $1.628 on every $1 of face value for notes due in April and $1.201 per $1 face value for notes with an August due date. Those payouts will take place on Jan. 3, 2024.

If it reaches agreements with key shareholders, Core Scientific will emerge from bankruptcy with $709 million in net debt and $791 million in equity value on Jan. 5, 2024. Through 2025, only $46 million in debt will mature.

Related: ‘Unjustly enriched’ — Core Scientific knocks back $4.7M claim from Celsius

Core Scientific operates seven facilities in five states and has a total operational capacity of 724 MW. It projects adding 372 MW of capacity through fiscal year 2027 and seeing its revenue rise from $583 million in 2024 to $968 million in 2027.

Core Scientific filed for bankruptcy in late December 2022. Low revenue and low Bitcoin prices were blamed for the company’s failure. It had rejected a bailout offer from the B. Riley financial services platform a week earlier.

Coinbase Banner  

Shareholders can vote on the plan through Dec. 13 and the Bankruptcy Court of the Southern District of Texas will make a decision on the plan on Dec. 22. If approved, the plan will go into effect on Jan. 5, 2024.

Magazine: Can Bitcoin survive a Carrington Event knocking out the grid?

Go to Source
Author: Derek Andersen


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.