Core Scientific is said to possibly sell some crypto mining sites in wake of bankruptcy
Core Scientific (NASDAQ:CORZ), the bitcoin (BTC-USD) miner that filed for bankruptcy protection earlier on Wednesday, is reportedly exploring a sale of up to one gigawatt worth of its mining facilities under development.
"The likelihood of us selling assets that we currently are operating at is close to zero," Core Chief Mining Officer Russell Cann told The Block. "The likelihood of us selling assets that are under development where we have power capacity and land and substations is high."
Moreover, the sites that might be sold are the ones that were supposed to be launched in 2023, Cann added, while noting the company currently mines up to 850 megawatts worth of power, making it one of the largest producers of bitcoin (BTC-USD).
In response to Core's (CORZ) previously announced $75M debtor-in-possession financing offer from its holders of convertible notes, Cann said "this is enough extra cash to get us through the Ch 11 process while we continue to operate as usual and when we come out of the Chapter 11 process, we will be fully solvent with no liquidity issues," as quoted by The Block.
As part of its restructuring process, Core is looking to convert most of its debt into equity. "We'll come out of Chapter 11 with a much, much smaller amount of debt on our company. So we should be close to debt free," Cann contended.
CORZ extended losses from early trading, now down some 50% to $0.10 a share compared with $0.16 at the opening bell.
Previously, (Nov. 22) Seeking Alpha contributor IncomeBent Investments flagged Core Scientific as "a company breathing its last breath before bankruptcy."