One of the largest crypto mining companies, Core Scientific, is reportedly filing for Chapter 11 bankruptcy protection in Texas due to falling revenue and low BTC prices.
Despite generating continuous positive cash flows, Core Scientific is still struggling to operate as the income is insufficient to satisfy the operational costs, including the lease repayment for its mining equipment.
CNBC revealed Core Scientific’s desperate move on communication with a person familiar with the company’s finances. The Bitcoin mining company would file for Chapter 11 bankruptcy early on Dec. 21.
A few days ago, to save Core Scientific from this situation, one of its major shareholders, B.riely had offered them $72 million. He had laid out plans to restructure the company’s debt and provide liquidity.
The CNBC report cites that Core Scientific will continue its mining operations and has no plans to liquidate. When B. Riley offered a lending hand, the company’s stocks momentarily surged nearly 200% but has since seen a steady decline.
