A bitcoin mining company, Core Scientific, is the latest crypto company to file for bankruptcy as the industry is rocked by the plunge in digital currency prices.
The Texas-based company reported assets of $1.4 billion and liabilities of $1.33 billion in its filing under Section 11 of the bankruptcy law.
Its stock, which had already lost 98% of its value fell an additional 40% today.
Section 11 of the US bankruptcy law allows companies to continue to operate while they work out a plan to repay their creditors.
In a statement, Core Scientific said it intends to reach a restructuring agreement with a group of convertible bondholders and resume mining operations.
It contributed 10% of the computing power to the bitcoin network
The company contributes about 10% of the computing power to secure the overall bitcoin network, with 243,000 servers for mining the cryptocurrency.
In the documents accompanying the bankruptcy filing, the company attributed its bankruptcy to falling bitcoin prices, soaring energy costs and the bankruptcy of Celsius in July.
It had also over-committed to spending on setting up its mining business and owed about $275 million on equipment purchases.
Listed on the stock exchange
Core Scientific is one of several mining companies that went public in 2021 before the cryptocurrency price plunge.
However, the crypto “winter” and increases in energy costs have caused chaos in the industry, with many large miners now facing liquidity crises.