bitcoin (btc) After posting a loss of more than $400 million in the third quarter, mining firm Core Scientific may be next in line for a bankruptcy filing.
The company, known as the largest publicly listed bitcoin miner in the US, has now posted a whopping $1.7bn loss for the year following a new SEC. Admission Revealed a third quarter loss of $434m.
“Management is actively taking steps to reduce operating costs, eliminate and delay construction expenses, reduce and delay capital expenditures, and grow revenue,” the company commented in the latest filing.
It added that some loan payments due in October this year have not been made, and said it expected creditors to take legal action as a result.
Core Scientific admitted in October that it was about to run out of money, and said at the time bankruptcy is a possibility, The Company has already engaged the law firm Weil, Gotshall & Manges LLP as legal advisor and PJT Partners LP as financial advisor to assist in the evaluation of strategic options.
As recently as last month, Core Scientific held $32 million in cash and 62 BTC. This was significantly less than the 8,000 BTC it held prior to the second quarter, when the company sold off the bulk of its bitcoin holdings.
According to the latest SEC filing, Core Scientific estimates that existing cash resources will be exhausted “by the end of 2022 or earlier.” It added that there exists “substantial doubt” about the company’s ability to continue operating going forward.
Given the massive scale of the Nasdaq-listed company, a potential bankruptcy for Core Scientific is expected to have wide-ranging implications for the bitcoin and crypto mining industry.
Shares of Core Scientific plunged 20% on Tuesday after the earnings report was released. The stock is now down close to 99% for the year.
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