Core Scientific: US crypto mining company warns of Bankruptcy

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Core Scientific, one of the largest publicly traded cryptocurrency mining companies in the US, has left open the possibility of declaring bankruptcy based on information filed with the SEC. The company also revealed that it will not be able to repay debt maturing in late October and early November.

Core’s stock “plunged” 79% after the data.

Since joining Nasdaq via SPAC, Core’s market capitalization has shrunk to $90 million from a $4.3 billion valuation in July 2021 when it went public. The stock is now down more than 97% this year. In the event of a bankruptcy, Core warns that holders of common stock could suffer “even a total loss of their investment.”

Core Scientific mines proof-of-work cryptocurrencies, such as bitcoin. The process involves powering data centers across the country, equipped with highly specialized computers that solve mathematical equations in order to validate transactions and simultaneously create new tokens. The process requires expensive equipment, some expertise and a lot of electricity.

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