Core Scientific reveals $434 million loss in Q3
- Bitcoin mining company Core Scientific posted a net loss of over $434 million in the third quarter of 2022.
- Losses up to 30 Septemeber were over $1.7 billion and the company has defaulted on its core debt facilities.
- Core Scientific says in a SEC filing that it could opt for bankruptcy relief before the end of the year.
Core Scientific (NASDAQ: CORZ), a publicly traded crypto miner that’s facing increased possibility of bankruptcy, has revealed a $434 million loss for the period ending September 30, 2022.
The Bitcoin miner shows in a filing with the US Securities and Exchange Commission (SEC) that its third quarter losses stood at $434,792,000 at the end of the quarter. For the nine months to 30 September, Core Scientific had posted a net loss of $1.7 billion, the filing showed.
Amid all these losses, which have come amid the crypto market crash, the company’s stock has fallen more than 98% year-to-date. CORZ is down more than 23% in the past five days.
Core faces bankruptcyCopy link to section
Core Scientific is among several cryptocurrency mining firms facing major losses in the past year, and its latest filing with the SEC shows it expects a cash crunch before the end of 2022. It could happen sooner, the company noted.
“Given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern through November 2023.”
In October, Core Scientific revealed its cash reserves were on the verge of depletion. It now appears the extreme market environment has contributed towards default on several debt facilities due last month.
Looking to invest?
Invest and trade CFD stocks, ETFs, digital assets & commodities in minutes with our highest-rated broker.
The miner therefore faces potential liquidation of collateral by creditors, court action or substantial increases to interest rates in lieu of the defaults. What’s next for the company? The management is exploring various rescue routes, including bankruptcy protection.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
It notes in the filing:
“The Company may seek alternative sources of equity or debt financing, evaluate potential asset sales, and potentially could seek relief under the applicable bankruptcy or insolvency laws.”
As reported by Invezz, Bitcoin mining firm Compute North already filed for bankruptcy in September.