Bitcoin Miner Core Scientific Warns of Bankruptcy with Stock Down 97% for the Year

Core Scientific is one of the largest publicly traded crypto mining companies (creating Bitcoin, etc.) in the United States.

This week, they’ve raised a red flag about the possibility of bankruptcy in a statement they filed with the Securities and Exchange Commission (SEC).

Core’s stock is down as much as 77% on Thursday since the filing and has lost more than 97% of its value.

The company also explained that it would not make its debt payments due in late October and early November.

Core Scientific’s market capitalization has fallen to $90 million, down from an impressive $4.3 billion in July 2021.

The team has warned that holders of its common stock could experience “a total loss of their investment” if they go bankrupt. The statement adds that the company’s “operating performance and liquidity have been severely impacted by the prolonged decrease in the price of bitcoin, the increase in electricity costs,” along with “the increase in the global bitcoin network hash rate.” The “hash rate” refers to the computing power of all miners in the bitcoin network.

Core told creditors that they are free to sue the company for nonpayment and take action concerning collateral along with “electing to accelerate the principal amount of such debt.”