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The company said in a statement on Tuesday that its restructuring plan had allowed it to reduce its debt by $400 million by converting its equipment loan and convertible noteholder debt into equity.

Core Scientific said its plan could further reduce its debt by converting the remaining convertible debt, providing investors with valid guarantees, and using its existing cash to pay down debt.

The CEO of Core Scientific, Adam Sullivan, said in a statement: “We are ready to execute on our pragmatic growth plan, continue to prepare for the upcoming halving, and create value by converting energy into high-value computing for bitcoin mining and other potential applications.”

Core Scientific, which currently operates mining facilities with a capacity of 724 megawatts in five states in the United States, plans to increase its total mining capacity by more than 50% over the next four years as it plans to bring new Bitcoin miners online.

In December 2022, the company filed for Chapter 11 bankruptcy protection after declines in cryptocurrency prices and a series of market failures. Major creditors included BlackRock and investment bank B. Riley.

Shares of bitcoin miners Marathon Digital and Riot Platforms have fallen this month following bitcoin volatility after the United States approved multiple spot bitcoin exchange-traded funds on January 10. Marathon Digital’s shares have fallen 29.74% since the beginning of the month, and Riot Platforms has fallen 26.77%.

The post Core Scientific to Continue Trading on Nasdaq! appeared first on Coin Engineer.

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Under the restructuring plan, the company will repay all of its existing debt and current shareholders will receive approximately 60% of the new company’s equity.

Core CEO Adam Sullivan said, “Today’s approval marks a pivotal moment in our restructuring. We are poised to emerge as a stronger company with a motivated and focused team by the end of the month.”

The approval came after the company closed its proposed $55 million equity rights offering earlier this month, which was one of the final steps in completing the miner’s restructuring.

Core Scientific had filed for Chapter 11 bankruptcy in late 2022

When the price of Bitcoin rose above $60,000 during the previous bull market, the company was the largest publicly traded bitcoin miner by hash rate, operating 143,000 mining rigs. However, when Bitcoin fell to around $16,000 in late 2022, Core Scientific filed for Chapter 11 bankruptcy.

Bitcoin has since rebounded to around $43,000, supported by renewed investor interest following the approval of a spot bitcoin ETF in the United States and ahead of the upcoming bitcoin halving. Core Scientific is looking to emerge from bankruptcy and maintain its leading position among its peers. The company expects to operate 182,000 mining rigs this year and nearly 1.1 million by 2027. Core also expects annual revenue to reach approximately $600 million in 2024 and nearly $1 billion in 2027.

Core Scientific’s emergence from bankruptcy is a sign that the cryptocurrency industry is emerging from a difficult period.

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