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On January 28, Core Scientific (CORZ) filed a motion to sell $6.6 million worth of Bitmain coupons to pay off its debts. The now bankrupt US-based Bitcoin miner has been in talks with Bitmain and two other potential buyers who may be interested in the sale.
Core Scientific Cryptocurrency miner to find debt solution in firesale
In 2022, the bitcoin price will fall due to several macroeconomic factors. BTC crypto miner Core Scientific is among the crypto companies that have suffered heavy losses after a prolonged crypto winter. Reports shared online indicated that Core Scientific recorded a loss of $435 in Q4 2022. Its total debt stood at $1.33 billion at the end of the year. As a result, Core Scientific filed for Chapter 11 bankruptcy in December 2022.
Following the bankruptcy announcement, Core Scientific is interested in raising funds to pay down its debts. His latest plan to sell Bitmain coupons is one of them. Vouchers will be sold at a discounted price. Notably, they come with some conditions for use. It is:
- The majority have an expiration date of March 22, 2023
- Buyers can only use it in purchasing the lower output AntMiner S19 model
- They only cover 30% of purchases from Bitmain.
Bankrupt mining startups apparently sell rigs backed by loans
In another report from Bloomberg, BlockFi Inc. has initiated plans to liquidate approximately $160 million in debt secured by approximately 68,000 Bitcoin mining rigs. The cryptocurrency lender filed for bankruptcy last year in November. The loan is not guaranteed, given the current cost of Bitcoin mining equipment.
According to additional data from TheMinerMag, BlockFi’s guaranteed hashrate has a total value of 6.7 EH/s, or $23 per TH/s, at face value. Below is a breakdown of debtors and their respective equipment financing.
With increasing volatility, the level of uncertainty in the cryptocurrency market is increasing every day. The collapse of several significant cryptocurrency companies has brought about failures that could impact the overall digital asset market price. This situation continues to worry investors and crypto experts.
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