Core Scientific, a Bitcoin mining company, has shared a presentation detailing its strategy to exit bankruptcy in January 2024. The presentation is based on the third amended joint Chapter 11 plan filed on Nov. 16, which includes a commentary by CEO Adam Sullivan.
The approach involves treating common shareholders and holders of two series of convertible notes differently. Common shareholders will receive new shares exchanged at a ratio of 25:1, giving them $1.08 per share before the exchange.
Investors who hold notes with an April maturity date will be paid $1.628 for every $1 of the face value of their notes. On the other hand, note holders with notes maturing in August will receive $1.201 per $1 face value. These payments are set to take place on January 3, 2024.
Assuming Core Scientific successfully negotiates agreements with key shareholders, the company will emerge from bankruptcy on January 5, 2024, with $709 million in net debt and an equity value of $791 million. Only $46 million in debt is set to mature through the year 2025.
Shareholders have the opportunity to cast their votes on the proposal until December 13. The Bankruptcy Court of the Southern District of Texas will then decide on the plan by December 22.
Core Scientific runs seven facilities across five states, with a combined operational capacity of 724 megawatts. The company plans to increase this capacity by 372 megawatts by the end of the fiscal year 2027 and has seen growth in revenue from $583 million in 2024 to $968 million in 2027.
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