8 months ago
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Core Scientific’s restructuring plan successfully slashes $400 million in debt by converting it into equity, marking a positive financial move.
On Wednesday, January 24, Texas-based Bitcoin mining company Core Scientific shall return to Nasdaq for trading. This is the first time that Core Scientific (OTCMKTS: CORZQ) will trade on Wall Street after the company filed for bankruptcy in 2022.
In a statement released on Tuesday, Core Scientific highlighted the success of its restructuring plan, which resulted in a substantial reduction of $400 million in debt. The strategy involved the conversion of debt from equipment lenders and convertible note holders into equity, signaling a positive step for the company’s financial health. Some of the big names like BlackRock and investment bank B. Riley, were part of Core Scientific’s restructuring plans.
The Bitcoin miner’s restructuring plan aims to further reduce debt burdens through additional measures. This includes the conversion of remaining convertible debt along with the utilization of available cash to make debt payments. Returning to Nasdaq is a significant milestone for Core Scientific highlighting its financial stability. In its official press release, Adam Sullivan, chief executive officer of Core Scientific, said:
“This week marks an important step forward for us as we emerge, re-list and now focus all our energy on the exciting opportunities ahead of us. 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 to Expand Its Bitcoin Mining Capacity
Core Scientific, which currently has operating facilities across five US states with a cumulative power capacity of 724 megawatts, has unveiled ambitious plans to boost its mining capacity. Besides, the company also aims to deploy new Bitcoin miners and grow its mining capacity by 50% in the next four years.
Last year in 2023, Core Scientific demonstrated its mining prowess by producing 13,762 Bitcoins using its existing fleet of miners. Additionally, the company generated another 5,512 Bitcoins for hosting customers, some of whom also share their proceeds with Core Scientific.
Now the company is also gearing up for the deployment and activation of nearly 27,000 new Bitmain S19 XP Bitcoin miners. this will be in addition to the expected deployment of around 12,000 Bitmain S21 Bitcoin miners by mid-2024. This strong focus on future business growth underscores Core Scientific’s commitment to staying at the forefront of Bitcoin mining technology.
