Bitcoin Miner Core Scientific Files for Bankruptcy
upstart writes:
The company plans to keep mining as it reaches a deal with its lenders, who harbor most of the debt:
The cryptocurrency industry takes another big hit-one of the largest publicly traded Bitcoin miners, Core Scientific, has filed for bankruptcy. The miner reportedly still plans to mine cryptocurrency as it pays off its debts.
CNBC reported late last night of the company's decision to file for Chapter 11 bankruptcy protection in Texas early this morning. While this may sound like a huge nail in the miner's coffin, Core Scientific is allegedly still earning money, just not enough to pay off its debts. CNBC says that the company has no plans to liquidate, but has reportedly reached a deal with some of its lenders, who hold most of the company's debts. Core Scientific mines Bitcoin at its plants in Georgia, Kentucky, North Carolina, North Dakota, and Texas, according to the company's website.
[...] According to an article from CoinDesk, which cites the company's filing in the Southern District of Texas, Core Scientific holds an estimated $1 billion to $10 billion in liabilities with anywhere from 1,000 to 5,000 creditors. The miner's assets total anywhere from $1 billion to $10 billion.
With the magnitude (and uncertainty) of the liabilities here, I can say that the economics behind the digital economy continues to perplex me. --hubie
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