One of the largest publicly traded cryptocurrency mining companies in the US, Core Scientific, plans to file for creditor protection in Texas bankruptcy court.
According to CNBC, Core Scientific is unable to pay off debt for rented mining equipment despite generating positive cash flow. Because the funds at the disposal of Core Scientific are not enough to service the growing debt, the company plans to file for protection from creditors in the bankruptcy court of Texas.
According to CNBC, citing unnamed sources at Core Scientific, the company does not plan to enter the stage of liquidation of the business, but intends to reach an amicable agreement with the largest creditors, which account for most of the debt, and continue to operate as usual.
In October, Core Scientific notified the US Securities and Exchange Commission (SEC) that it was terminating its partnership with Celsius Mining and intending to seek legal protection to recover a $5.4 million debt from the company.
