The firm said that it has successfully reduced $400 million in debt via its restructuring plan.
Core Scientific has 724 MW of mining capacity across five states in the U.S.
As part of its attempts to reorganize after filing for bankruptcy in 2022, Core Scientific, a bitcoin mining corporation located in Texas, has stated that it would resume trading on Wednesday and return to Nasdaq.
In a statement released on Tuesday, the firm said that it has successfully reduced $400 million in debt via its restructuring plan. This was achieved by turning the debt of equipment lenders and convertible note holders into equity.
Pragmatic Growth Plan
Core Scientific said that the company intends to use available funds to pay down debt, convert the remaining convertible debt, and allow investors to exercise any relevant warrants in order to further decrease its debt.
Adam Sullivan, chief executive officer of Core Scientific stated:
“We are poised to execute our pragmatic growth plan, continue preparing for the coming halving and create value by transforming energy into high value compute for bitcoin mining and other potential applications.”
Core Scientific has 724 MW of mining capacity across five states in the U.S, and it wants to deploy more bitcoin miners over the next four years, increasing the overall mining capacity by more than 50%.
After a string of market failures and precipitated drops in cryptocurrency prices, the business sought Chapter 11 bankruptcy protection in December 2022. Investment firm B. Riley and asset manager BlackRock were among the major creditors.
Miners Riot Platforms and Marathon Digital saw their stock prices drop this month as a result of bitcoin’s volatility after the United States approval of multiple spot bitcoin exchange-traded funds on January 10.