Core Scientific files for bankruptcy

SAFAKNA TURKEY – Core Scientific Inc, one of the largest publicly traded cryptocurrency mining companies in the US, announced on Wednesday that it had filed for bankruptcy protection.

Austin, Texas-based Core Scientific attributed its bankruptcy to falling bitcoin prices, rising energy costs for bitcoin mining, and $7 million in outstanding debt from one of its largest clients, U.S. crypto-lending organization Celsius Network.

Core Scientific said in its court filings that it posted a net loss of $434.8 million in the three months ending September 30, 2022, and only had $4 million in liquidity at the time it filed for bankruptcy.

The company reached an agreement with restructuring advisers in October and has since been in talks with creditors about a possible bankruptcy filing.

The cryptocurrency industry has lost more than $1 trillion this year as rising interest rates exacerbated fears of an economic slowdown. The crash wiped out key industry players such as cryptocurrency hedge fund Three Arrows Capital and Celsius.


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