Bitcoin (BTC) mining company Core Scientific is to file for Chapter 11 bankruptcy protection in Texas.
Bitcoin mining companies are on the verge of bankruptcy due to the difficult processes brought by the crypto market. Recently, Compute North filed for Chapter 11 bankruptcy in court in Texas. This event, which has gained a lot of attention on the agenda, has raised concerns about the course of Bitcoin mining companies. Compute North, a fairly large mining company, referred to the challenging market conditions. Another Bitcoin miner, Core Scientific, will file for Chapter 11 bankruptcy today.
Bitcoin Miner Core Scientific Wants to Continue Operations
According to information reported by CNBC, Bitcoin miner Core Scientific will file for bankruptcy. In the past weeks, B Riley Financial has worked hard to ensure that the largest publicly traded mining company does not go bankrupt. B Riley donated $72 million in aid.
Core Scientific, a publicly traded company, generated a very positive cash flow. However, the company had a hard time paying the debts of the equipment it rented. Cash flow was not effective against debt burden.
Also, according to reports, Core Scientific chose not to go into liquidation. The company will look for a way to reach an agreement with the most important of the institutions it borrows from. If the company can reach a common point with its debtors, it will be able to continue its operations from where it left off.