Bitcoin Miner Core Scientific Files for Chapter 11 Bankruptcy

  • Core Scientific’s bankruptcy filing revealed the company had between $1 billion and $10 billion in assets, and the same amount in liabilities.
  • The company is one of the largest Bitcoin miners in the world, and is responsible for around 10% of the computing power on the Bitcoin network through its 243,000 machines.
btc mining


Publicly traded firm Core Scientific (CORZ), one of the largest Bitcoin miners in the world, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.

According to its filing, Core Scientific is estimated to have between $1 billion and $10 billion in assets, and the same amount in liabilities, The document also revealed that it has around 1,000-5,000 creditors, with investment bank B. Riley being listed as the holder of the largest unsecured claim, which is slightly above $42 million.

The first warning that the BTC miner was at risk of bankruptcy came in late October, when a Securities and Exchange Commission (SEC) filing revealed it was exploring a number of alternatives for raising additional capital, but should it failed it could file for Chapter 11. In November, another SEC filing noted that the company had accumulated a $1.71 billion total net loss for 2022, and that it was anticipating to deplete its cash resources “by the end of 2022 or sooner”.

Last week, B. Riley proposed a $72 million financing plan “on favorable terms” to Core Scientific, which included $40 million in immediate financing with “zero contingencies” and an additional $32 million once BTC reached a price of $18.500. At the time the investment bank said that “bankruptcy was not necessary at all”, and that the majority of Core Scientific’s financial problems were “self-imposed and can be corrected with an open, transparent discussion”.

While it is not the first crypto miner to file for bankruptcy, it is the largest one to date, with Core Scientific accounting for around 10% of the computing power on the Bitcoin network. The company is operating around 143,000 self-mining servers, and another 100,000 customer-owned ASIC servers.

Related Coverage
IRS Files $44B Worth of Tax Claims Against FTX Bankruptcy
  • The IRS filed its claims against FTX under the “Admin Priority” classification, which could allow it to supersede the claims of other creditors in the bankruptcy case.
  • The largest of the claims is against Alameda Research LLC, with the IRS claiming around $20 billion in partnership taxes and close to $400 million in payroll taxes.
May 11, 2023, 9:16 AM

Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
lev radin/Shutterstock

Bittrex Files for Chapter 11 Bankruptcy in the U.S.
  • The cryptocurrency exchange is estimated to have more than 100,000 creditors, and between $500 million and $1 billion in both assets and liabilities.
  • The Chapter 11 filing came less than a month after the U.S. SEC filed charges against Bittrex and its former CEO, claiming they were operating an unregistered securities exchange.
Gemini Hopes for Swift Genesis Mediation Process
  • Genesis, its parent company Digital Currency Group, the Unsecured Creditors Committee, and Gemini have all agreed to a 30-day mediation process.
  • Although supportive of the process, Gemini expressed the “need for urgency” for a final resolution to be reached “as soon as possible”.