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One of the largest publicly traded cryptocurrency mining companies in the United States, Core Scientific, plans to file for protection from creditors in Texas bankruptcy court.
According to CNBC, Core Scientific cannotpay off debt for leased mining equipment, despite generating positive cash flow. Because Core Scientific's cash flow is insufficient to service its growing debt, the company plans to file for protection from creditors in Texas bankruptcy court.
As reported by CNBC, citing unnamedSources in Core Scientific, the company does not plan to enter into the stage of liquidation of the business, but intends to reach a settlement agreement with the largest creditors, who account for the majority of the debt, and continue to operate as usual.
In October, Core Scientific notified the Commission onUS Securities and Exchange Commission (SEC) on termination of cooperation with Celsius Mining and intention to seek legal protection to collect debt from the company in the amount of $5.4 million.
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