The bear market continues to wreak havoc on the cryptocurrency industry. One of the groups of actors most affected by the situation is the mining companies. They are facing rising energy costs, coupled with a declining Bitcoin price and increasing mining difficulty. Compute North has already filed for bankruptcy. Meanwhile, Argo faces a negative balance sheet for several years. In addition, industry giant Core Scientific is on edge and trying to hold its own. This, while waiting for the imminent recovery of the Bitcoin (BTC) market. But things don’t go as planned. The bear market continues and the company’s financial condition is getting worse.
Core Scientific, the American bitcoin (BTC) mining giant, has it Advertising There is great doubt about her future. He explained that doubt particularly weighs on its ability to continue its cryptocurrency activities beyond November 2023. Core Scientific will need additional funds to survive beyond that deadline.
In addition, Core Scientific reported a Loss $435 million in the third quarter. And as a reminder, in the second quarter, its net loss was $862 million. In total, the crypto business has already lost $1.7 billion between January and September.
The ability to raise money through financing and capital market transactions is subject to many risks and uncertainties. The current market conditions have reduced the availability of these sources of capital and liquidity.”Core Scientific said in a note from the Securities and Exchange Commission (SEC).
contractor The crypto firm announced that it is working with law firm Weil, Gotshal & Manges and financial advisor PJT Partners. These should help reduce operating costs, eliminating and delaying capital expenditures. Stakeholders expect these actions to help increase Core Scientific’s revenue.
On the other hand, they will consider selling assets or bankruptcy protection. Their efforts could also cover liability management transactions, including swapping existing debt for equity or additional debt. As a reminder, Core Scientific has over $1 billion in debt, and BlockFi is one of its largest creditors.
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Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only fueled my enthusiasm. So I resolved to study and understand the blockchain and its many uses and pass on my pen information related to this ecosystem.