Core Scientific BANKRUPT! – 232

Core scientific is filing for bankruptcy So Bitcoin minor core scientific files For bankruptcy and expect support from Some debt holders the publicly traded Minor expects support from some of the Holders of its convertible notes in a Restructuring deal so they will be Restructuring of course scientific one Of the largest Bitcoin miners by Computing power filed for bankruptcy Protection on Wednesday and reached a Deal with some of its lenders to Restructure its debt the company filed For chapter 11 at Southern District of Texas Bankruptcy Court as crypto winter Continues to take its toll on the Industry the miners estimated Liabilities are between 1 billion and 10 Billion dollars that's quite the Gap According to the filing It has around one thousand to five Thousand creditors with the largest Unsecured claim coming from Investment Bank B Riley the miners estimated assets Are between 1 billion and 10 billion Dollars according to filing at the end Of the third quarter core Scientifics Assets stood at 1.4 billion dollars Whereas its liabilities were at about 1.3 billion dollars according to its Earnings report The bankruptcy of course scientific Which accounts for about 10 percent of The computing power on the Bitcoin

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Network operating 143 000 mining Rigs And hosting another hundred thousand is The biggest one yet and is set to send Shock waves in an already crumbling Industry Of course scientific reached an Agreement with some of its creditors in What appears to be a pre-packaged Bankruptcy in a pre-packaged bankruptcy The debtor reaches some sort of Agreement with its daddy before Officially finally filing for bankruptcy The Miner expects to support or expect Support from some of its convertible Note holders in the form of two debtor In possession facilities totaling up to 75 million dollars core scientific said In a press release This support will help it go through the Bankruptcy process which it intends to Do swiftly in the press release or that That's what the press release said the Miner had 544 million in convertible Notes outstanding at the end of the Third quarter existing convertible note Holders will equitize their debt into a Significant majority of the common stock Of the reorganized company end quote the Mining firm said other holders of General unsecured claims and existing Common shareholders will also receive Meaningful recoveries in the form of Reorganized common stock in warrants Under the restructuring deal the company

First warned of the risk of bankruptcy In late October and it said it wouldn't Be paying some of its loan installments Sending its shares plummeting 80 on the NASDAQ in November it reiterated that it May run out of money by the year end of The year Last week Investment Bank B Riley Proposed a 72 million dollar financing Plan including 40 million of financing Immediately and with zero contingencies However the rest of the funding would be Made available once Bitcoin hit 18 500. Core scientific has 42 million dollars Outstanding to the bank instead of Course I instead core scientific expects To seal a deal with a group representing More than 50 percent of the holders of Its convertible notes that will grant Its 56 million dollars in a dip facility The no holders have agreed to Syndicate Up to 19 million in new money dip Facility loans to all holders of Convertible notes the Wednesday press Release set these funds along with Ongoing cash generated from operations Are anticipated to provide necessary Financing to F uh Fq8 uh what I don't know I actually Don't know this word let's go uh Look it up I don't know how to pronounce It Effectuate effectuate that that makes a Lot of sense the plan uh restructuring

Facilitate the emergence from chapter 11 And cover the fees uh and expenses of Legal and financial advisors the miners Said core scientific operations remain Significantly cash flow positive and on A debt-free basis the press release said So that's pretty good Core scientific is one of the several Miners struggling to keep afloat as Rising Energy prices increase costs While stubbornly low Bitcoin prices Slash Revenue compute North another Major firm in the space filed for Chapter 11 bankruptcy in late September Iris energy had to unplug about 72 Percent of his competing power that was Tied to just over 100 million dollars of Loans that it defaulted on the loans Were held by special purpose Non-recourse vehicles in November Argo Blockchain's deal to sell 27 million Dollars of equity to fund operations Fell through and the company was Subsequently downgraded by two analysts Green Ridge generation on Tuesday Announced a debt restructuring deal with Its lender and why dig but could still Run out of cash in two months if it Doesn't secure at additional funding Core scientific has also been affected By the bankruptcy of lender Celsius Network's mining arm one of its biggest Clients And lender to block five to which it

Owes 50 more 4 million dollars which is Hilarious because obviously that entire Thing is just going down going you know Going down the drain extremely quickly Celsius mining filed for chapter 11 Bankruptcy in July and in September sued Core scientific claiming it violated Automatic stay terms core scientific Claims Celsius owes it 5.2 million Dollars as of September 30th block 5 Filed for chapter 11 bankruptcy Protection in late November one of the Many victims of crypto exchange ftx's Implosion no we are not going to allow That narrative I'm sorry block flies Failure came way before FTX they were Bailed out by FTX and then FTX failed Blackfy was bailed out they were a Failure long before FTX There is no world in which you should Basically move that blame off of blockfi Themselves And you should be extremely cautious Surrounding anybody that moves from Block five to another cryptocurrency Project Okay Don't like it when they frame it like That it's deceptive Core scientific was running 243 000 Machines in its facilities as of the end Of October split between 14.4 eggs a Hash a second of bitcoin's self-binding Hash rate and 10 exahash a second of

Hosted machines for other firms According to the filing that's about 10 Percent of the global hash rate which Stands at around 243 eggs a hash a Second as of riding the company went Public in January 20 After January of 2020 After merging with power and digital Infrastructure acquisition is special Purpose acquisition company transactions Shares of course guy and typically were Down around 27 percent at 15 cents a Share during pre-market strategy So there you go guys pretty much like I Said the miners are starting to Capitulate fail there's going to be a Lot of mergers and Acquisitions it's Kind of been like the story for a while Thanks for checking out this clip from The crypto mining show you can check out The full episode here or more crypto Content down here also I'd like you to Check out my locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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