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Core Scientific, one of the leading victims of the cryptocurrency industry among bitcoin miners, has received approval for its Chapter 11 restructuring plan from the U.S. Bankruptcy Court for the Southern District of Texas. The company expects to relist its shares on Nasdaq by the end of this month.
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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.