After a 13-month restructuring process, cryptocurrency mining company Core Scientific relisted on the Nasdaq stock exchange on Wednesday. In a statement, the company said it now has a more robust balance sheet after clearing $400 million in debt.
According to Yahoo Finance data, Core Scientific’s stock, symbol CORZ, opened at $5.55 and closed at $3.44 on Wednesday, marking a drop of over 30%. A spokesperson for Core Scientific told Cointelegraph, “The price volatility is not surprising. We remain focused on executing our pragmatic growth plans to deliver long-term shareholder value.”
Core Scientific’s restructuring plan involved converting debts owed to equipment lenders and convertible noteholders into company equity. Convertible notes are a type of debt that can be converted into shares. By converting these debts into equity, Core Scientific reduced its financial liabilities. Additionally, as part of the bankruptcy plan, the company is also considering converting remaining debts into equity and utilizing cash.
Based on Bitcoin’s mining power, Core Scientific was the largest publicly-listed Bitcoin miner during the peak of the cryptocurrency bull market in 2021. However, on December 21, 2022, the company filed for bankruptcy protection as the price of Bitcoin had dropped to around $16,000.
Related report: “Bankruptcy Restructuring Plan of Bitcoin Miner Core Scientific Approved by Court, Expected to Relist by the End of January.”
In 2023, Core Scientific produced 13,762 BTC through its own mining machines and generated 5,512 BTC on behalf of its hosting clients. However, the mining company will face new challenges in 2024.
In a report released this month, digital asset management company CoinShares predicted that after the Bitcoin halving, the production and cash costs for Bitcoin miners would increase. They estimated that the cost per Bitcoin would rise from around $16,800 to between $27,900 and $37,800. Additionally, the average production cost for cryptocurrency miners post-halving is expected to reach $37,856.
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