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- 1 As per the statement of Core Scientific CEO, the company is planning to exit bankruptcy.
- 2 Core Scientific filed for bankruptcy protection after the price of bitcoin declined sharply amid growing energy prices.
- 3 Bitcoin price grew 64.49% in the past three months.
Core Scientific, one of the biggest Bitcoin miners in the U.S., will come out of bankruptcy in mid-January 2024 according to the company’s CEO Adam Sullivan.
The company and shareholders have reportedly struck an in-principle agreement to distribute convertible notes and shares by mid-January 2024, with a NASDAQ relisting to follow, this was stated in the December 21 release.
In expressing his excitement for the company’s resurgence, Sullivan mentioned: “a post-emergence pathway to de-lever our balance sheet and a plan for continued growth in 2024 and beyond.”
Following the start of the bankruptcy process, Core Scientific was delisted. Through a merger with a blank-check corporation in a deal that valued the miner at $4.3 Billion at the time, it had gone public in mid-2021.
Reason Why Core Scientific Filed Bankruptcy
Earlier in December last year, TheCoinRepublic reported that Core Scientific filed for bankruptcy protection, amid a decline in BTC price, growing energy expenses for bitcoin mining, and outstanding debt from Celsius Network, a primary U.S. cryptocurrency lender.
Mining PoW-based crypto is expensive because the equipment required for the process is expensive and requires massive amounts of energy.
How did Bitcoin and other crypto Respond in the past Quarter?
Bitcoin price grew by 64.49% in the past three months, and in terms of year-to-date time frame, it has surged 164.46%. However, Ethereum also showed a growth of 45.04% in a quarter.
The entire crypto market cap expanded 113.73% in the year-to-date time frame. As per market analysts, the stir and sudden surge in the majority of crypto coins and tokens is largely due to the hype of Bitcoin and other spot ETFs.
Despite recent blowups and controversies in the cryptocurrency sector, the world’s most significant token and pioneer of the crypto industry, Bitcoin, is making a return.
Several variables are driving Bitcoin’s recent surge. Perhaps, the most significant are indications that large investing firms are on the verge of receiving regulatory clearance to offer spot bitcoin exchange-traded funds. This pooled investment product can be bought and sold like stocks.
Bitcoin also benefits from Wall Street’s growing belief that the Federal Reserve has reached the end of its rate hike cycle and that the central bank may even begin softening monetary policy by mid-2024 to keep the economy on pace. When interest rates fall, investors are more willing to invest.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
