- B. Riley wanted to forestall a Chapter 11 bankruptcy filing.
- The US-based mining corporation sold off 1576 BTC during the month of September.
Numerous companies operating in various subsets of the cryptocurrency industry have failed this year. Multiple well-known businesses, including blockchain development firms, crypto lending platforms, and leading exchanges are feeling the heat.
It has been reported that Core Scientific, formerly the leading Bitcoin mining firm, is now on a downward spiral. US-based publicly listed business apparently plans to seek Chapter 11 bankruptcy protection in the state of Texas. CNBC was told this to be true by an insider who is acquainted with the company’s financials.
B.Riley Financial, one of Core Scientific’s top debtors, sent a public letter to the company’s shareholders and lenders last week. To avoid filing for bankruptcy, the financial services platform proposed a $72 million capital. B. Riley wanted to forestall a Chapter 11 bankruptcy filing by Core Scientific by taking this action.
Mining to Continue
The company’s condition deteriorated even more while the Bitcoin price remained relatively unchanged. Due to the increasing sell pressure, the US-based mining corporation sold off 1576 BTC during the month of September.
The CNBC article noted, however, that the firm is still earning cash. However, it cannot pay off the financial obligation on the leased equipment with that amount of cash on hand. Although as per reports the firm will still continue mining despite Bankruptcy filing.
This year, shareholders have seen a precipitous decline in the value of their shares. With a high of almost $10 per share at the start of the year, CORZ has had its value slashed by 98.02% to its current low of $0.21. Yet another crypto firm bites the dust due to prolonged crypto winter.
