- Major Bitcoin mining firms move towards bankruptcy.
- Many couldn’t withstand the financial year 2023.
- Core Scientific files for Chapter 11 bankruptcy.
The year 2022 couldn’t be denied that it has indeed been tough. Though the end for the year is near, yet tragedy never fails to keep out of the crypto industry. As we are in the last quarter of the financial year 2022, statistics for the year 2023 are in preparation, and many firms have completed their preparations.
However, for the crypto-based firms, especially the mining sector in keen, is bleeding quite heavily. In recent times, most of the Bitcoin (BTC) mining firms have either filed for bankruptcy or are on the verge of filing for it.
Accordingly, the downfall of the BTC in 2022 tremendously impacted all the BTC mining firms. In addition, the debt incurred was rising higher, and higher. Somehow, many BTC mining firms survived the near end of 2022, but for the year 2023, it’s very evident that they cannot.
Bankruptcy Filing by Core Scientific
The American Bitcoin mining firm, Core Scientific, has been one of the most dominating BTC miners of the U.S. Nevertheless, the fall of BTC by more than 60% affected the company tremendously.
According to sources, Core Scientific has filed for bankruptcy of Chapter 11. Previously, one of the most valued creditors of Core Scientific, B.Riley Financial put forth that there is no cause or possibility for Core Scientific to file for bankruptcy. This is due to the fact that they had a $72 million financial plan. Anyway, no one knew that BTC would drop down so low, and stay stagnant.
On the other hand, another BTC mining firm also based in the U.S, the Greenidge has approached the NYDIG, in order to make arrangements to restructure the financial debt of $ 74 million. The filing request for this has been already produced to the U.S Securities and Exchange Commission (SEC).
Moreover, another BTC mining firm, Northern Data officially declares that it doesn’t have any debts currently, and will prosper extremely for the year 2023. Yte numerous accusations were put forth towards Northern Data to go bankrupt.
