By: Eva Baxter
Bitcoin mining firm Core Scientific announced that it has been granted court approval to push forward with its reorganization plan. The company expects to emerge from Chapter 11 bankruptcy proceedings soon.
This development is poised to transform Core Scientific into an even stronger entity. The company intends on creating shareholder value amidst increasing Bitcoin and high-value computing demand.
As part of the plan, shareholders will receive Core Scientific's new common stocks and warrants, which constitute nearly 60% of the company's new equity. Notably, the firm plans on full debt clearance upon plan execution, signifying a $1 billion reduction from its pre-reorganization debt balance.
In a separate report, Bloomberg suggested that the plan will eliminate $400 million from Core Scientific's balance sheet. Also, it indicated that the firm would be re-listing its shares on Nasdaq on Jan. 24, 2024.
Previously, Core Scientific filed for Chapter 11 bankruptcy in December 2022 but continued operations, securing a multi-million-dollar loan from BlackRock and other creditors following its bankruptcy filing. Additionally, Core Scientific reached an expansion deal with Bitmain last year, and its stock (CORZQ) currently stands at $1.18.
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