Bitcoin Miner Core Scientific

The bitcoin miner asserted that the prolonged decline in the price of bitcoin and the rise in electricity costs had hurt its operational performance and liquidity. Before declaring bankruptcy this spring, Celsius was one of the biggest names in the cryptocurrency lending industry. It provided annual returns of almost 19%.

One of the US-listed cryptocurrency miners, Core Scientific, has filed for bankruptcy with the Securities and Exchange Commission (SEC), citing the possibility of bankruptcy. The company also announced that it would not repay its debts in late October and early November.

Following the filing, Core’s stock fell as much as 77% on Thursday.

Core was listed on the Nasdaq through a special purpose acquisition company or SPAC. Its market capitalization dropped from a $4.34 billion valuation in July 2021 to $90 million. This year the stock lost over 97,3% of its value.

The process involves powering data centers across the country full of specialized computers to verify transactions while generating new tokens. The procedure calls for pricey machinery, some technical expertise, and a lot of electricity.

The token price for Core, which primarily mints bitcoin, has fallen from an all-time high above $69,000 in November 2021 to roughly $20,500. Its profit margins have shrunk due to that 70% value loss, increased competition among miners, and rising energy prices.

After selling almost all of its bitcoin in June, the business only has $26.6 million in cash. The company Core warns that even though it self-mines bitcoin to replenish its supplies ($770,000 worth of bitcoin on Wednesday), it may run out entirely by the end of the year, if not sooner.

One of the biggest hosts and providers of blockchain infrastructure and a major player in digital mining assets in North America, Core, isn’t the only company going through difficulties. In September, Compute North, an infrastructure and hosting services provider for cryptocurrency mining, filed for Chapter 11 bankruptcy.