Daily Crypto News

Celsius Contagion?: Another Crypto Miner Expected To File Bankruptcy – Fin Tech – United

To print this article, all you need is to be registered or login on Mondaq.com.

In an earlier post we discussed the bankruptcy filing of Compute
North Holdings, Inc., a bitcoin miner felled by high electricity
costs and falling cryptocurrency prices (see here). It may be followed shortly by another
miner, Core Scientific, Inc., which announced on October 26, 2022
that it has similarly been severely impacted by rising electricity
costs and the price of bitcoin. It also noted increases in the
“global bitcoin network hash rate” as well as ongoing
litigation with Celsius Networks and its affiliates. The company,
whose stock is listed on NASDAQ under the symbol CORZ, is engaged
in a battle with Celsius regarding the latter’s failure to pay
certain “utility tariffs” purportedly owing in relation
to the hosting of Celsius’ mining equipment at Core
Scientific’s data centers, among other things. In a filing earlier this month in Celsius’
bankruptcy case, Core Scientific asserted that it was “losing
approximately $1.65 million per month subsidizing Celsius’s
business.” A hearing on Core Scientific’s demand that
Celsius pay these administrative expenses, among other things, has
been scheduled for November 9, 2022 in Celsius’ case. Core
Scientific may have commenced its own case by that time.

In its 8-K, Core Scientific announced that it will be
unable to make certain upcoming payments under financing
arrangements. Such failure may lead to defaults under its other
indebtedness, including two series of convertible notes. They have
hired restructuring advisors and announced that alternatives
include the filing for bankruptcy. As of the date of the 8-K, the
company was holding 24 bitcoins and approximately $26.6 million in

Meanwhile, Compute North Holdings’ case has progressed
rapidly. The company is engaged in a sale process and has scheduled
an auction to begin on November 1, 2022.

We will provide further updates as on these matters as
circumstances warrant.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Technology from United States

Read More: Celsius Contagion?: Another Crypto Miner Expected To File Bankruptcy – Fin Tech – United

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.