• Core Scientific, a crypto mining firm, is expected to exit its bankruptcy proceedings by September 2021.
• The company’s liquidity position has improved thanks to recent market conditions and the court granting a three-month extension.
• The share price of Core Scientific has increased dramatically since the beginning of 2021.
Core Scientific Exits Bankruptcy
Core Scientific, a crypto mining firm, is expected to exit its bankruptcy proceedings by September 2021 following a three-month extension granted by the court. The company’s liquidity position has improved due to recent market conditions and this has led to an increase in its share price since the start of 2021.
Recent Market Conditions
The filing with the Texas Bankruptcy Court revealed that Core Scientific could reach its restructuring plan as soon as September 25, 2023. A disclosure statement regarding the reorganization plan will be filed on June 15, 2023 and objections can be submitted until August 30th. Judge David Jones urged Core Scientific to expedite their restructuring timeline in order to appease creditors.
Share Price Increase
According to data from MarketWatch, Core Scientific’s share price has risen 7% over the past 24 hours and is currently trading at $0.38 per share – a 441% increase since the start of 2021. This rally can largely be attributed to Bitcoin’s increasing value throughout this year so far.
The bankruptcy plan will see Core Scientifc gain back $46 million after exiting Chapter 11 proceedings due to favorable market conditions, as well as agreement from creditors who have accepted their terms for restructuring debt obligations.
Crypto miner Core Scientifc expects that it will successfully exit bankruptcy by September 2021 following an improvement in liquidity position due mainly to recent market conditions and an extended period granted by judges for restructuring plans. The company’s stock has experienced drastic growth in value since January 2021 – likely linked with Bitcoin’s rising prices – which could indicate potential further success post-bankruptcy for Core Scientifc investors should BTC continue on its current trajectory