Core Scientific emerges from Bankruptcy, set to relist shares on Nasdaq
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- Core Scientific exits bankruptcy, plans Nasdaq relisting after 13-month restructuring.
- Shareholders retain 60% of shares under Chapter 11, ensuring stability and recovery.
- CEO Adam Sullivan optimistic, emphasizes Bitcoin production, with 13,700 self-mined BTC in 2023.
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In a significant development for the blockchain industry, Core Scientific, a leading Bitcoin miner, is poised to emerge from bankruptcy, marking the end of a 13-month restructuring journey.
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The company has officially announced its plans to relist its “CORZ” shares on the Nasdaq, highlighting a strategic move after confirming the Chapter 11 plan of reorganization by the United States Bankruptcy Court for the Southern District of Texas.
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Core Scientific shares relisting on Nasdaq
Copy link to sectionThe process of exiting from bankruptcy has taken Core Scientific over a year and involved meticulous restructuring.
The Bitcoin mining firm has set January 23 as the emergence date, with expectations to relist its shares on Nasdaq by the end of January 2024.
Under the Chapter 11 plan, existing shareholders are set to retain over 60% of the company’s shares. This move signifies a crucial step in the company’s financial recovery, emphasizing stability and value retention for its shareholders.
The bankruptcy court’s approval, particularly in the Southern District of Texas, validates Core Scientific’s reorganization efforts. United States Bankruptcy Judge Christopher Lopez praised the plan during a hearing, noting that it provides a substantial recovery for both unsecured creditors and equity holders. Additionally, the Bitcoin miner anticipates preserving close to 240 jobs as part of its post-bankruptcy operational strategy.
Debt reduction and full recovery
Copy link to sectionAs part of the restructuring plan, Core Scientific aims to cut down millions of dollars in debt from its balance sheet. This reduction represents a proactive measure towards achieving a “full recovery” for creditors across all classes. The company’s commitment to financial stability aligns with its broader objectives, showcasing responsible management and a clear vision for sustainable growth.
Core Scientific’s CEO, Adam Sullivan, expressed optimism about the confirmation, labelling it a defining moment in the company’s reorganization. Sullivan highlighted the motivation and alignment within the team, emphasizing the company’s readiness for success. In addition to financial matters, Core Scientific remains a significant player in the Bitcoin mining sector, producing over 13,700 self-mined Bitcoin and an additional 5,500 BTC from co-located miners in 2023.
This emergence from bankruptcy positions Core Scientific for a new chapter, demonstrating resilience and adaptability in the rapidly evolving landscape of blockchain and cryptocurrency.
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