Core Scientific Outlines Plan to Emerge from Bankruptcy in Early 2024
Bitcoin (BTC) miner Core Scientific has released a presentation detailing its plans to emerge from bankruptcy in early January 2024. The presentation, based on the third amended joint Chapter 11 plan filed on November 16, includes an audio commentary by CEO Adam Sullivan.
The plan outlines separate arrangements for common shareholders and holders of two series of convertible notes. Common shareholders will receive new shares exchanged at a ratio of 25:1, providing them with $1.08 per pre-exchange share.
Noteholders, on the other hand, will receive $1.628 for every $1 of face value for notes due in April and $1.201 per $1 face value for notes with an August due date. These payouts are scheduled to take place on January 3, 2024.
If Core Scientific reaches agreements with key shareholders, it will emerge from bankruptcy on January 5, 2024, with $709 million in net debt and $791 million in equity value. The company’s debt maturity is projected to be $46 million through 2025.
Core Scientific currently operates seven facilities in five states with a total operational capacity of 724 MW. The company plans to add 372 MW of capacity by fiscal year 2027, with revenue expected to rise from $583 million in 2024 to $968 million in 2027.
Core Scientific filed for bankruptcy in late December 2022, citing low revenue and low Bitcoin prices as factors contributing to its failure. The company had previously rejected a bailout offer from the B. Riley financial services platform. Shareholders have until December 13 to vote on the plan, and the Bankruptcy Court of the Southern District of Texas will decide on the plan’s approval on December 22. If approved, the plan will go into effect on January 5, 2024.
However, the question remains: Can Bitcoin survive a Carrington Event that knocks out the grid?
