Summary
Blockchain infrastructure and hosting provider Core Scientific has received approval from a Texas court for its reorganization plan, allowing the company to exit bankruptcy. The plan includes a 100% recovery for all creditors and a significant recovery for existing equity holders. Core Scientific aims to relist its shares on Nasdaq later this month. The company secured financing through a $55 million equity rights offering and plans to emerge from bankruptcy on January 23. Core Scientific operates a large number of bitcoin miners across various data centers and mined 1,177 BTC in December 2023.
Key Points
1. Core Scientific, a blockchain infrastructure and hosting provider, has received approval from a Texas court to exit bankruptcy and re-list its shares on the Nasdaq later this month.
2. The company filed for bankruptcy in December 2022 after facing difficulties in generating enough revenue to cover its debt obligations, resulting in the need for high-interest loans.
3. The reorganization plan includes 100% recovery for all creditors, significant recovery for existing equity holders, the equitization of $400 million in claims, and a decrease in annual debt service by approximately $60 million.