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Core Scientific emerges from bankruptcy, secures $55 million in new financing

Press Releases Crypto News CryptoBriefing Core Scientific emerges from bankruptcy, secures $55 million in new financing

Core Scientific, one of the largest Bitcoin mining companies prior to its filing for bankruptcy, has closed a new $55 million equity offering as it prepares to emerge from its Chapter 11 filing in December 2022.

The equity offering was oversubscribed, with excess capital set to be returned to investors.

“As a result of this successful raise, and following full repayment of previously drawn amounts on our DIP [debtor-in-possession] financing, we are set to emerge from Chapter 11 in January with enhanced liquidity and in a strong position to continue executing our growth plans,” shares Core Scientific CEO Adam Sullivan.

Core Scientific expects to relist on the Nasdaq stock exchange once the restructuring concludes and it returns to solvency. Core Scientific went public in mid-2021 through its acquisition of Power & Digital Infrastructure Acquisition Corp., with the deal valued at $4.3 billion at the time.

According to Core Scientific’s latest financial report from November 2023, the mining company held assets totaling $2.3 billion and liabilities amounting to $559 million, resulting in shareholder equity worth over $1.7 billion on its balance sheet.

The fresh capital comes on the heels of Core Scientific fully repaying its $35 million debtor-in-possession (DIP) financing loan last week. The mining firm still has access to the $35 million in DIP financing as it finalizes bankruptcy proceedings this month.

The Bitcoin mining firm drastically spiraled into bankruptcy last year, where it cited plunging Bitcoin prices, rising mining costs, and a significant increase in competition from the Bitcoin mining sector as primary factors. Core Scientific also cited bad debt exposure to bankrupt crypto lending firm Celsius, which filed for bankruptcy in June 2022 amid widespread liquidity issues across the crypto

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Author: Vince Dioquino

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