Core Scientific, one of the world’s largest Bitcoin mining companies, has filed for bankruptcy in the US. The bankruptcy of the public company listed on the Nasdaq was caused by the decline in the price of Bitcoin and rising energy costs.
The world of cryptocurrencies is going through a difficult period due to the collapse of the giant stock market FTX, the collapse of Bitcoin to recent lows. This situation caused investors to be worried and timid about cryptocurrencies, and even caused some companies in the industry to go bankrupt.
Now, it has been revealed that the crypto money mining area, which has grown in recent years, has also been affected by the bad trend. US-based, one of the 15 largest crypto mining companies in the world Core Scientific files for bankruptcy in the country.
The decline in Bitcoin and rising mining costs led to the bankruptcy of the giant company
The company, headquartered in Texas, filed for bankruptcy in the state today. The company stated that it has reached a restructuring agreement with its lenders and creditors, adding that it plans to continue producing Bitcoin.
The bankruptcy of the company operating at its facilities in five US statesdeclines in the prices of cryptocurrencies and used in the mining process global rise in energy costs then it came. The crypto giant also stated in its bankruptcy filing that the decline of Bitcoin, the inability to receive payments from some of its customers and the increase in electricity costs caused this.
Market value has bottomed out in the last 8 months
The market value of Core Scientific, a publicly traded company listed on the Nasdaq, was in April, according to data from the Financial Times from FactSet. reached 3 billion. However, this amount has declined sharply since then. below $100 million and it just hit rock bottom.
Additionally, Core Scientific, the crypto loan company that crashed last summer Celsius Network was also adversely affected by its bankruptcy. The two companies disagreed over the service Core provided to Celsius. The bankruptcy of Celsius, which is indebted to Core, is also the reason why the giant mining company their financial problems increased even more.
The leading cryptocurrency Bitcoin (BTC), which has reached the lowest levels of the last two years this year, is trading at around $ 16,779 at the time of writing this news.
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