April 19, 2024
Core Scientific's Shareholder Deal Signals NASDAQ Relisting Post-Bankruptcy
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Core Scientific Nears Exit from Bankruptcy, Plans NASDAQ Relisting

Core Scientific, a prominent Bitcoin mining entity in the United States, is set to exit bankruptcy proceedings next month. As per the Dec. 21 announcement, the company has finalized an agreement with its shareholders, aiming to distribute convertible notes and stock by mid-January 2024, followed by relisting on the NASDAQ exchange. CEO Adam Sullivan expressed optimism about the company’s resurgence, highlighting a post-emergence pathway to de-leverage the balance sheet and a plan for continued growth in 2024 and beyond.

Under this agreement, existing Core Scientific shareholders will receive new shares at a 25:1 ratio, providing them with $1.08 per pre-exchange share. Additionally, noteholders will receive $1.628 for each $1 of face value for convertible notes maturing in April and $1.201 per $1 face value for notes with an August maturity date. Core Scientific went public in July 2021 through a $4.3 billion special purpose acquisition company (SPAC) deal, initially valuing its stock at $10. However, a series of factors, such as the crypto winter, escalating energy costs, heightened mining complexity, and debts incurred by crypto firm Celsius, led to Core Scientific’s bankruptcy filing by December 2022.

Post-agreement implementation in January will leave Core Scientific with $709 million in net debt and $791 million in shareholder’s equity. By 2025, only $46 million of the debt will mature. During its bankruptcy phase, the company sealed a $77 million cash and stock arrangement with Bitmain, a Bitcoin application-specific integrated circuit (ASIC) manufacturer, for 27,000 mining rigs. Currently, Core Scientific possesses over 199,000 ASICs and self-mines approximately 32 bitcoins daily.

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