Core Scientific May Be Closed At The End Of 2023 If The Market Continues To Be Doomsday
While attempting to find new sources of funding and make cost reductions, Core Scientific stated that there was substantial doubt about its ability to continue operations past November 2023.
The company said in a Securities and Exchange Commission filing:
“The ability to raise funds through financing and capital market transactions is subject to many risks and uncertainties and current market conditions have reduced the availability of these capital and liquidity sources. Substantial doubt exists about the Company’s ability to continue as a going concern through November 2023.”
Core Scientific’s problems are a reflection of the industry’s problems, which include rising power costs, falling Bitcoin prices, and harder mining. Argo reported experiencing negative cash flow, while Compute North had already declared bankruptcy.
Core Scientific also reported third-quarter sales of $162.6 million, a 0.9% decrease from the prior quarter. The first nine months of the year had a total net loss of $1.7 billion, down from the second quarter’s $862 million and the quarter’s net loss of $434.8 million.
The miner had previously issued a warning that it might run out of money by the end of the year and would be unable to make payments by the end of October.
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