Cryptocurrency miner Core Scientific anticipates emerging from bankruptcy in mid-to-late January, a year after facing financial challenges due to the crypto market collapse.
The Austin-based company reached an in-principal agreement with stakeholders for a global settlement, removing obstacles to its Chapter 11 emergence. Core Scientific filed for bankruptcy in December the previous year, citing factors such as declining bitcoin prices, high energy costs for mining, and unpaid debts from U.S. crypto lender Celsius Network.
The broader crypto market lost over a trillion dollars in value, leading to the downfall of industry players like Three Arrows Capital and Celsius.
FTX's bankruptcy filing in November 2022 intensified regulatory scrutiny.
Core Scientific, engaged in processing Bitcoin transactions, rescheduled its confirmation hearing to January 10 and aims to modify certain dates, previously valued at $4.3 billion, the company had gone public in 2021 through a merger but was delisted during the bankruptcy proceedings.