Core

Bitcoin

Million

April

<a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/">Core Scientific</a> is planning a strong financial rebound by year's end. The company recently reached agreements with debt and equity holders for a restructuring plan. The aim is to exit Chapter 11 bankruptcy by the close of 2023, according to <a href="https://theminermag.com/news/2023-10-31/core-scientific-eyes-chapter-11-exit-by-year-end/">theminermag</a>. 
On Tuesday, Core filed a Restructuring Term Sheet with both the bankruptcy court and the <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">SEC</a>. This crucial move aims to win court approval for its yet-to-be-formalized third amended bankruptcy reorganization plan. The Term Sheet outlines Core's future financial obligations, which include issuing $150 million in new notes and $260 million in new convertible notes. Due to these steps, Core seems committed to regaining financial stability after issuing over $500 million in convertible notes in April and August of last year. 
The newly issued notes will mature in four and five years, respectively. As for interest rates, the new notes will carry a 12% rate, with the first payment due in June 2024. Interestingly, this payment schedule aligns with the period two months after the next scheduled Bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a> event. 
Last year, Core filed for Chapter 11, largely due to the financial strain from the market crash on its leveraged <a href="https://ultramining.com/news/en/bitcoin-miners-showcase-steady-hodl-patterns-marathon-leads-with-full-retention/">hodl</a> strategy. Since then, the company has lost significant market share to competitors like <a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/">Marathon</a>. Core accounted for 5.1% of total Bitcoin mined in January 2023, a figure that shrunk to 3.37% by September. To regain its foothold, Core struck a deal with <a href="https://ultramining.com/news/en/antminer-unveils-revolutionary-x5-the-first-professional-xmr-miner-alongside-exciting-price-guessing-campaign/">Bitmain</a> in September, aiming to purchase 4 EH/s in S19XPs using cash and equity.

Core Scientific Targets Year-End Chapter 11 Exit With $410 Million in Notes

Ultramining_Eng

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