One of the largest public crypto mining firms in the United States, Core Scientific, filed a notice with the SEC that they would miss upcoming debt payments due in October and November. They also wrote that the company « potentially could seek relief under the applicable bankruptcy or insolvency laws. In the event of a bankruptcy proceeding or insolvency, or restructuring of our capital structure, holders of the Company’s common stock could suffer a total loss of their investment. »
Core Scientific blamed their precarious financial situation on « 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 ». Bankrupt crypto platform Celsius owes Core Scientific around $5.4 million.
Core Scientific’s stock plummeted from around $1 a share to around $0.20 on the news, an 80% decrease. The stock started the year at $10.43 a share, and has decreased in value by 98% year-to-date.