Core Scientific files for bankruptcy

One of the largest bitcoin miners, Core Scientific, has failed to cope financially and filed for Chapter 11 bankruptcy on 21 December 2022.

For the time being, the company still manages to generate positive cashflow. But according to an insider, this revenue is not enough to pay off debts to finance the miner's units it has been leasing.

The firm has no plans to liquidate. They will continue to operate and mine the cryptocurrency until they make a deal with the majority holders of their shares.

Miner claims that its operating performance and liquidity have been severely affected by the prolonged decline in the bitcoin price, higher power costs, and litigation with cryptocurrency lender Celsius Networks and its affiliates.

The other day, B. Riley committed $72 million to bailout Core Scientific, but as it turns out, that didn't help save them from bankruptcy.