Bitcoin Miner Core Scientific Is Exhausting Financially
Bitcoin miner Core Scientific has acknowledged that business is in significant financial problems.
According to a Securities and Exchange Commission filing on October 26, its cash reserves will be depleted by the end of 2022. It will not make payments due to some of its equipment and other financings in late October and early November.
Core Scientific had 24 Bitcoins and roughly $26.6 million in cash at the time of the filing, down from 1,051 Bitcoins and approximately $29.5 million in cash just a few weeks earlier on September 30.
The company stated that the protracted decline in the price of Bitcoin, the increase in power expenses, the increase in the global Bitcoin network hash rate, and litigation with crypto lender Celsius had a significant impact on it.
Core Scientific alleges it is still due $5.4 million for hosting services for Celsius Mining. Celsius filed a request in response, claiming that its bankruptcy status shields the company from creditor enforcement action and judicial processes.
Celsius, which filed for Chapter 11 bankruptcy protection earlier this year, spent $54 million in Core Scientific in July 2021 as part of a larger investment in Bitcoin mining totaling more than $200 million.
According to the filing, Core Scientific is considering hiring strategic counsel, obtaining new funds, or reorganizing its present financial structure.
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