Source: Adobe / artiemedvedev

The major US-based Bitcoin miner Core Scientific has emerged from bankruptcy. The company is now preparing to return to the stock market.

The United States Bankruptcy Court for the Southern District of Texas has confirmed Core Scientific’s Chapter 11 plan of reorganization. This paves the way for the company to resume normal operations and re-list its shares on the Nasdaq stock exchange. Core Scientific stock is expected on the market “by the end of January 2024,” an announcement from Tuesday said.

The Bankruptcy Court has confirmed our Chapter 11 plan of reorganization. The Bankruptcy Court’s approval of our plan clears the way for Core Scientific to emerge and re-list on Nasdaq by the end of January 2024!

Read the full press release here: https://t.co/9pvy6hKOrP pic.twitter.com/3rnKjG1TBv

— Core Scientific (@Core_Scientific) January 16, 2024

Existing shareholders to get 60% of new equity

The approved plan outlines that shareholders, as of the anticipated record date of January 23, 2024, will receive shares of the company’s new common stock and warrants, constituting approximately 60% of the new equity.

Assuming the cash exercise of applicable warrants and the funds are used to pay down debt, this move will result in the full payment of the company’s existing debt. Consequently, the firm will be reducing debt from its balance by approximately $1 billion prior to the plan.

The announcement that the miner’s restructuring plan had been approved came after the firm in December said it had “reached an agreement in principle” with all key stakeholders on the terms of its restructuring.

In a comment, Core Scientific’s CEO, Adam Sullivan, expressed confidence in the company’s future, emphasizing the alignment for success and the motivation of the team.

Sullivan said:

“With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale.”

Law firm Gotshal & Manges LLP acted as Core Scientific’s legal counsel through the bankruptcy process. Additionally, PJT Partners LP served as the investment banker.

Core Scientific Partners with Bitmain

In October last year, Core Scientific announced a new partnership with Bitmain, the world’s largest manufacturer of Bitcoin mining machines.

As part of the deal, Bitmain will invest $53.9 million in the company, expanding the two firms’ already long-standing relationship.

Core Scientific mined 13,762 BTC for its own account over the course of 2023. The company uses approximately 158,000 self-owned Bitcoin mining machines, according to an annual report from the firm.

Core Scientific’s December and Full Year 2023 #Bitcoin Production and Operations Update is out!

– Produced 1,177 self-mined bitcoin and an estimated
449 bitcoin from colocated miners in December
– Produced a total of 13,762 self-mined bitcoin and an
estimated 5,512 bitcoin… pic.twitter.com/Sr0Acvgb7J

— Core Scientific (@Core_Scientific) January 5, 2024

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