Summary
Core Scientific, a leader in high-performance blockchain computing data centers and software solutions, has announced that the United States Bankruptcy Court has confirmed the company’s Chapter 11 plan of reorganization. This approval clears the way for Core Scientific to emerge from bankruptcy and relist on Nasdaq by the end of January 2024. Under the plan, shareholders will receive new common stock and warrants, constituting approximately 60% of the company’s new equity. The approval follows the successful completion of an oversubscribed $55 million Equity Rights Offering.
Introduction
Core Scientific, a prominent player in the blockchain computing industry, has received confirmation from the United States Bankruptcy Court for its Chapter 11 plan of reorganization. This news paves the way for the company to emerge from bankruptcy and relist on Nasdaq in the coming days. With a focus on high-performance blockchain computing data centers and software solutions, Core Scientific is well-positioned to capitalize on the growing demand for Bitcoin and high-value compute.
Main Points
- Under the confirmed Chapter 11 plan, shareholders will receive new common stock and warrants, amounting to approximately 60% of the company’s new equity.
- The company’s existing debt will be paid in full, resulting in a reduction of about $1 billion from its debt balance prior to the plan.
- Core Scientific recently completed an oversubscribed $55 million Equity Rights Offering and fully paid off its DIP financing.
- The company’s CEO, Adam Sullivan, expressed optimism about the future, stating that Core Scientific is poised to emerge as a stronger company, delivering superior efficiency at scale.
Conclusion
Core Scientific’s Chapter 11 plan of reorganization has been confirmed by the United States Bankruptcy Court, allowing the company to move forward with its emergence from bankruptcy and relisting on Nasdaq. Shareholders will receive new common stock and warrants, representing approximately 60% of the company’s new equity. By paying off its existing debt and executing its growth plan, Core Scientific aims to create value for its shareholders and meet the increasing demand for Bitcoin and high-value compute.