Langsung ke konten utama

Core Scientific Shares Downgraded After SEC Filing Hints at Possible Bankruptcy

Core Scientific Shares Downgraded After SEC Filing Hints at Possible Bankruptcy

One of the largest publicly listed bitcoin miners, Core Scientific, has shaken investors with a recent filing with the U.S. Securities and Exchange Commission that raises the possibility the company may apply for bankruptcy protection. The filing notes that Core Scientific will be unable to pay down debt payments due for Oct. and early Nov. 2022.

SEC Filing Shakes Core Scientific Investors, CORZ Slides 97% in 12 Months

Bitcoin miners are having issues after the price of bitcoin (BTC) has slid roughly 70% against the U.S. dollar since Nov. 10, 2021. Moreover, the network’s mining difficulty is currently at an all-time high, making it harder than ever before to find a block subsidy. At the end of September, Bitcoin.com News reported on Compute North filing for bankruptcy and how it led to Marathon Digital’s shares getting downgraded. Now Core Scientific (Nasdaq: CORZ) seems to be leaning in the direction of filing for bankruptcy protection or some sort of restructuring process.

The news stems from a U.S. Securities and Exchange Commission (SEC) filing Core Scientific filed on Oct. 26, 2022. Essentially, Core Scientific says it will not be able to make loan payments for Oct. and early November, and the team has been engaged with law firms in order to discuss a possible restructuring process or filing for bankruptcy protection. The company cites that its finances have been depleted and it blames the price of bitcoin (BTC) and other types of negative exposure.

“As previously disclosed, 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, the increase in the global bitcoin network hash rate and the litigation with Celsius Networks LLC and its affiliates,” Core Scientific’s filing notes. As of Oct. 26, Core Scientific has roughly 24 BTC in reserves which equates to $497,901, using today’s BTC exchange rates.

Since the SEC filing, Core Scientific’s stock CORZ is down 97% year-to-date. Furthermore, on Oct. 28, the B. Riley analyst Lucas Pipes downgraded CORZ to neutral. “While Core has prioritized liquidity since the start of the crypto winter, we believe negative hosting margins (during 2Q) and compressed self-mining margins have exerted extra pressure on the company’s ability to meet its financial obligations,” the analyst noted on Friday.

What do you think about Core Scientific’s SEC filing? Let us know what you think about this subject in the comments section below.



source https://news.bitcoin.com/core-scientific-shares-downgraded-after-sec-filing-hints-at-possible-bankruptcy/
Label:

Komentar

Posting Komentar

Postingan populer dari blog ini

Kucoin Hacked for $150 Million in Bitcoin; Bitfinex and Tether Freeze $33 Million of the Stolen Funds

Cryptocurrency exchange Kucoin may have been hacked for $150 million in bitcoin and multiple ERC20 tokens. The Singapore-based exchange confirmed the September 25 security breach, but did not disclose the amount stolen. “Bitcoin, ERC-20 and, other tokens in Kucoin’s hot wallets were transferred out of the exchange,” said Kucoin in an update on Saturday. Meanwhile, Bitfinex and Tether, issuers of the centralized stablecoin USDT , immediately froze a combined $33 million worth of USDT suspected to be part of the funds looted in the Kucoin hack – an action that has stirred questions around the influence of centralized platforms. Paolo Ardoino, chief technology officer of both entities, tweeted that Bitfinex froze $13 million USDT on EOS as part of the hack. Tether froze $20 million USDT “sitting on this ethereum address as a precautionary measure,” he said. In its update, Kucoin maintains that funds in its cold wallets (offline storage, which is less susceptible to hacks) ar...
Posting Komentar
Baca selengkapnya

Pi Coin dan Potensinya Kedepan Menurut Pakar Crypto Dunia

Apa Itu Pi Coin? Pi Coin adalah token yang beroperasi di atas Pi Network, sebuah proyek yang bertujuan membuat penambangan cryptocurrency dapat diakses oleh lebih banyak orang. Berbeda dengan Bitcoin, pengguna tidak perlu perangkat keras mahal—cukup dengan aplikasi smartphone. Dengan 35 juta pengguna yang disebut Pioneers, Pi Network berfokus pada membuat crypto lebih ramah pengguna dan ramah lingkungan. Peluncuran Open Network: Apa yang Akan Datang? Peluncuran Open Network pada 20 Februari 2025 menjadi titik penting bagi Pi Coin. Setelah tanggal ini, Pi Coin akan dapat terhubung dengan jaringan lain, membuka kemungkinan perdagangan di platform seperti WEEX, sebuah platform perdagangan futures crypto baru. Permintaan Pi Coin diperkirakan akan meningkat, yang berpotensi membuat harganya naik tajam. Tantangan Regulasi Namun, jalan Pi Coin tidak mulus. Proyek ini menghadapi tantangan regulasi yang cukup berat. Kepatuhan terhadap KYC (Know Your Customer) dan AML (Anti-Money Laundering) men...
Posting Komentar
Baca selengkapnya

Pi Network: Menambang Cryptocurrency Gratis dan Anti Monopoli

Pi Network - Mulai Menambang Gratis Pi Network: Menambang Cryptocurrency Gratis dan Anti Monopoli Pi Network adalah proyek cryptocurrency yang memungkinkan Anda menambang Pi Coin secara gratis dan tanpa perangkat keras canggih. Hanya dengan menggunakan ponsel Anda, Anda bisa bergabung dalam jaringan blockchain yang sedang berkembang ini. Potensi Pi Network: Dengan semakin banyaknya pengguna, Pi Coin bisa menjadi mata uang digital yang sangat berharga di masa depan. Menambang Anti Monopoli: Tidak seperti penambangan tradisional, Pi Network memungkinkan siapa saja untuk berpartisipasi tanpa memerlukan perangkat keras mahal. Cara Menambang: Cukup unduh aplikasi Pi Network, daftar, dan mulai menambang hanya dengan menekan tombol di aplikasi setiap hari. Mulai Menambang Pi Network Gratis
Posting Komentar
Baca selengkapnya