Core Scientific, one of the most prominent victims of the crypto winter among bitcoin miners, has received approval for its Chapter 11 reorganization plans from the Southern District of Texas Bankruptcy Court, and expects to relist its shares on the Nasdaq by the end of this month.
Under the reorganization plan, the company will repay its existing debt in full and current shareholders will receive about 60% of the new company’s shares, according to a press release.
“Today’s confirmation of the plan is a critical moment in our reorganization; we are poised to emerge by the end of this month a stronger company, with a highly motivated team that is poised for success,” Adam Sullivan, Core’s CEO, said in the statement.
The approval came after the company closed a proposed $55 million equity rights offering earlier this month, among the miner’s final steps to complete its reorganization.
At the height of the 2021 bull market, when the price of Bitcoin rose over $60,000, the company was the largest publicly traded Bitcoin miner by computing power or hash rate, operating 143,000 mining rigs. However, by the time Core Scientific filed for Chapter 11 on December 21, 2022, the price of Bitcoin had fallen to around $16,000.
The company is now emerging from bankruptcy as the price of Bitcoin rose to $43,000, fueled by renewed interest from investors following the US Securities and Exchange Commission’s approval of Bitcoin exchange-traded funds (ETFs) and ahead of the Bitcoin halving.
The mining company still expects to maintain its leading position among its peers when it emerges from bankruptcy, according to a recent filing, and expects to have 182,000 mining rigs for its own operations this year, increasing that number to roughly 1.1 million in 2027. Core also expects to see what Nearly $600 million in annual revenue in 2024 and up to nearly $1 billion by 2027.