After 13 months of restructuring, cryptocurrency mining company Core Scientific relisted on the Nasdaq stock exchange on Wednesday. The company stated in a press release that it now has a more robust balance sheet after clearing $400 million in debt.
According to Yahoo Finance data, Core Scientific’s stock, CORZ, opened at $5.55 and closed at $3.44 on Wednesday, a decrease of over 30%. A Core Scientific spokesperson told Cointelegraph, “Price volatility is not unexpected. We remain focused on executing our pragmatic growth plans to deliver long-term shareholder value.”
Core Scientific’s restructuring plan includes converting debts owed to equipment lenders and convertible noteholders into company equity. Convertible notes are a type of debt that can be converted into stock, and by converting these debts into equity, Core Scientific reduced its financial liabilities. Additionally, as part of the bankruptcy plan, the company is considering converting remaining debts into equity and utilizing cash.
By Bitcoin hash rate calculations, Core Scientific was the largest Bitcoin mining company during the peak of the cryptocurrency bull market in 2021. However, on December 21, 2022, Core Scientific filed for bankruptcy protection when the price of Bitcoin had dropped to $16,000.
In 2023, Core Scientific produced 13,762 BTC through its own mining machines and generated 5,512 BTC on behalf of its hosting clients. However, the mining company will face new challenges in 2024.
Digital asset management company CoinShares predicted in a report released this month that after the Bitcoin halving, Bitcoin miners’ production and cash costs will increase. They estimate that the cost per Bitcoin will rise from around $16,800-$25,000 to between $27,900-$37,800. Additionally, the average production cost for cryptocurrency miners after halving is expected to reach $37,856.
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