Core Scientific, a Bitcoin mining enterprise, relists after 13 months of restructuring with a stock price plummeting over 30%

Core Scientific, a Bitcoin mining enterprise, relists after 13 months of restructuring with a stock price plummeting over 30%

Core Scientific, a Bitcoin mining enterprise, relists after 13 months of restructuring with a stock price plummeting over 30%

Cryptocurrency mining company Core Scientific relisted on the NASDAQ stock exchange on Wednesday (24th) after a 13-month restructuring process. According to a statement released by the company, Core Scientific now has a more robust balance sheet after settling $400 million in debt.

According to Yahoo Finance, Core Scientific’s stock (CORZ) opened at $5.55 and closed at $3.44 on Wednesday, representing a decline of over 30%. A spokesperson for Core Scientific told Cointelegraph, “Price fluctuations are not surprising. We remain focused on executing our pragmatic growth plans to deliver long-term shareholder value.”

Core Scientific’s restructuring plan involves converting debts owed to equipment lenders and convertible noteholders into company equity. Convertible notes are a type of debt that can be converted into stocks. By converting these debts into equity, Core Scientific has reduced its financial liabilities. Additionally, as part of the bankruptcy plan, the company is also considering converting the remaining debt into equity and utilizing cash.

Based on Bitcoin’s hash rate, Core Scientific was the largest publicly listed Bitcoin miner during the peak of the cryptocurrency bull market in 2021. However, Core Scientific filed for bankruptcy protection on December 21, 2022, when the price of Bitcoin had already dropped to $16,000.

Related report: “Bankruptcy restructuring plan for Bitcoin miner Core Scientific approved by court, expected to relist by the end of January.”

In 2023, Core Scientific produced 13,762 BTC through its self-owned mining machines and generated 5,512 BTC on behalf of its hosting clients. However, the mining company will face new challenges in 2024.

A report released by digital asset management company CoinShares this month predicts that after the Bitcoin halving, both production and cash costs for Bitcoin miners will increase. They estimate that the cost per Bitcoin will rise from approximately $16,800 to between $27,900 and $37,800. Additionally, the average production cost for cryptocurrency miners is expected to reach $37,856.

Source: [Data source]