Core Scientific (NASDAQ: COZ), a publicly traded The crypto miner, facing an increasing possibility of bankruptcy, has shown a loss of $434 million for the period ending September 30, 2022.
Bitcoin miner shows in a Admission Its third quarter loss was $434,792,000 at the end of that quarter, according to the US Securities and Exchange Commission (SEC). The filing showed Core Scientific reported a net loss of $1.7 billion for the nine months to September 30.
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Amidst all these losses amid the crypto market crash, the company’s stock has fallen over 98% year-to-date. CORZ is down more than 23% in the past five days.
Core faces bankruptcy
Core Scientific is one of many cryptocurrency mining The firms suffered big losses over the past year, and its latest filing with the SEC shows it expects to run out of cash before the end of 2022. That could happen soon, the company noted.
“Given the uncertainty regarding the financial condition of the Company, substantial doubt exists about the Company’s ability to continue as a going concern beyond November 2023.”
In October, Core Scientific revealed that its cash reserves were about to run out. It now appears that the extreme market environment has contributed to defaults on several credit facilities due last month.
The miner therefore faces a substantial increase in interest rates in lieu of possible liquidation of collateral by creditors, court action or default. What’s next for the company? The management is exploring various escape routes including bankruptcy protection.
It notes in the filing:
“The company may seek alternative sources of equity or debt financing, evaluate potential asset sales, and potentially seek relief under applicable bankruptcy or insolvency laws.”
as informed of By Invezz, bitcoin mining firm Compute North has already filed for bankruptcy in September.
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