Core

Celsius

2024

Bitcoin

<a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/">Core Scientific</a>, a major player in the crypto mining sector, faced a significant downturn as its stock value dropped by 30% upon relisting on Nasdaq. This decline occurred after the company underwent a 13-month restructuring process. On January 24, Core Scientific's shares, traded under the ticker CORZ, plummeted, reaching $3.84, according to <a href="https://cointelegraph.com/news/core-scientific-stock-down-30-percent-after-bankruptcy-relisting">Cointelegraph</a>. 
The restructuring initiative involved converting debts owed to equipment lenders and holders of convertible notes into company equity. Convertible notes, a form of debt that can be converted into stock, were thus used to reduce Core Scientific's financial liabilities, clearing out $400 million in debt. 
Despite the sharp drop in share price, Core Scientific remains focused on its long-term growth strategy, aiming to deliver value to shareholders. The company is exploring options to convert remaining debt into equity and use cash as part of its bankruptcy plan. 
This situation reflects the broader challenges faced by <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/">crypto miners</a> during the crypto winter. Core Scientific's bankruptcy filing in December 2022, under Chapter 11, was a response to falling Bitcoin prices, escalating <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">energy costs</a>, and debts linked to the bankrupt Celsius Network. Chapter 11 bankruptcy allows firms to continue operating while stakeholders agree on a restructuring plan. 
In 2023, Core Scientific mined 13,762 BTC from its fleet and 5,512 BTC for <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">hosting</a> customers. However, 2024 poses new challenges for <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/">mining companies</a>. CoinShares anticipates a rise in <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/">production</a> and cash costs for <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/">Bitcoin miners</a> following the <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a> event. The costs could escalate from approximately $16,800-$25,000 per Bitcoin to between $27,900-$37,800. The average production cost for miners post-halving is expected to reach $37,856.

Core Scientific’s Stock Plummets 30% Post-Bankruptcy Relisting

Ultramining_Eng

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