Bitcoin mining firm Core Scientific has unveiled its strategy for emerging from bankruptcy in early January 2024, as outlined in the third amended joint Chapter 11 plan filed on November 16. CEO Adam Sullivan provides audio commentary in the presentation, which details separate arrangements for common shareholders and holders of two series of convertible notes.
Common shareholders are set to receive new shares at a 25:1 ratio, equating to $1.08 per pre-exchange share. Noteholders will receive $1.628 for every $1 of face value for notes due in April and $1.201 per $1 face value for notes with an August due date. These payouts are scheduled for January 3, 2024.
Pending agreements with key shareholders, Core Scientific aims to emerge from bankruptcy on January 5, 2024, with $709 million in net debt and $791 million in equity value. Only $46 million in debt is set to mature through 2025.
Operating in seven facilities across five states with a total operational capacity of 724 MW, Core Scientific anticipates adding 372 MW of capacity by fiscal year 2027. Revenue projections indicate an increase from $583 million in 2024 to $968 million in 2027.
Today’s $CORZ daily self-mined #Bitcoin for the last reported 24-hour period (02-Dec-2023): 30.1 pic.twitter.com/KuKyORAkka
— Core Scientific (@Core_Scientific) December 3, 2023
Core Scientific filed for bankruptcy in late December 2022, attributing its financial struggles to low revenue and Bitcoin prices. A bailout offer from the B. Riley financial services platform was declined a week before the filing.
Shareholders have until December 13 to vote on the plan, with the Bankruptcy Court of the Southern District of Texas set to make a decision on December 22. If approved, the plan is slated to take effect on January 5, 2024.