Crypto mining company Core Scientific has received court approval to emerge from bankruptcy and relist its “CORZ” shares on the Nasdaq exchange. This marks the end of a 13-month restructuring process for the firm, with an emergence date targeted for January 23, 2024.
Court-approves Core Scientific restructuring plan
After months of financial reorganization, Core Scientific has successfully obtained confirmation from the Southern District of Texas bankruptcy court regarding its reorganization plan. The company is now preparing to re-emerge from bankruptcy and anticipates being relisted on the Nasdaq exchange the day following its emergence.
Under the Chapter 11 plan, existing shareholders are set to retain approximately 60% of the company’s shares. This restructuring also aims to alleviate a significant portion of the company’s debt and provide a “full recovery” to all creditors. U.S. Bankruptcy Judge Christopher Lopez approved the plan during a hearing, noting that it offers substantial benefits to unsecured creditors and equity holders.
This restructuring plan is expected to safeguard over 240 jobs at Core Scientific and provide job security for its employees. Core Scientific CEO Adam Sullivan emphasized the significance of this milestone, stating, “Today’s plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success.”
Core Scientific’s position in the crypto-mining industry
Core Scientific is a prominent player in the United States’ cryptocurrency mining sector. In 2023, the company mined over 13,700 Bitcoins through its self-mining operations and an additional 5,500 from co-located miners.
Core Scientific has contributed significantly to the cryptocurrency mining ecosystem despite its previous financial struggles.
A combination of factors influenced the journey to bankruptcy. The prolonged bear market, escalating energy costs, increased mining difficulty, and loans extended to crypto firm Celsius, which later became bad debt, all played a role in Core Scientific’s financial challenges. These difficulties ultimately led to the company filing for bankruptcy in December 2022.
Nasdaq delisting and subsequent relisting
Before the bankruptcy proceedings began, Core Scientific was listed on the Nasdaq Global Select Market under the “CORZ.” However, due to its financial troubles, it was delisted from the exchange. With the successful confirmation of its reorganization plan, Core Scientific is now poised to rejoin the Nasdaq and once again trade under the “CORZ” symbol.
Core Scientific credits a significant increase in Bitcoin and hash prices as contributing factors that made its restructuring plan possible. Since the company filed for bankruptcy in December 2022, Bitcoin’s price has experienced substantial growth. This uptrend in the cryptocurrency market has provided Core Scientific with more favorable conditions for its recovery.
A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
