The cryptocurrency industry takes another big hit — one of the largest publicly traded Bitcoin miners, Core Scientific, has filed for bankruptcy. The miner reportedly still plans to mine cryptocurrency as it pays off its debts.
CNBC reported late last night of the company’s decision to file for Chapter 11 bankruptcy protection in Texas early this morning. While this may sound like a huge nail in the miner’s coffin, Core Scientific is allegedly still earning money, just not enough to pay off its debts. CNBC says that the company has no plans to liquidate, but has reportedly reached a deal with some of its lenders, who hold most of the company’s debts. Core Scientific mines Bitcoin at its plants in Georgia, Kentucky, North Carolina, North Dakota, and Texas, according to the company’s website.
Core Scientific did not immediately return Gizmodo’s request for comment on the decision to file for bankruptcy or for specifics on the company’s plans moving forward.
According to an article from CoinDesk, which cites the company’s filing in the Southern District of Texas, Core Scientific holds an estimated $US1 ($1) billion to $US10 ($14) billion in liabilities with anywhere from 1,000 to 5,000 creditors. The miner’s assets total anywhere from $US1 ($1) billion to $US10 ($14) billion.
An earnings report for the quarter ending on September 30 revealed that the company’s assets totaled $US1 ($1).4 billion while its liabilities totaled $US1 ($1).3 billion. In the meantime, Core Scientific will be entering a Restructuring Support Agreement with Ad Hoc Noteholder Group, which represents 50% of Core Scientific’s lenders.
The crypto winter is full steam ahead — what was once a semi-promising industry earlier this year has continued to flounder. Notably, FTX CEO Sam Bankman-Fried has been arrested and reportedly now back in the United States where he faces eight criminal counts, which include fraud and money laundering.