Core Scientific (CORZ), one of the largest bitcoin (BTC) miners by computing power, filed for bankruptcy protection on Wednesday and reached a deal with some of its lenders to restructure its debt.
The company filed for Chapter 11 at Southern District of Texas bankruptcy court as crypto winter continues to take its toll on the industry. The miner’s estimated liabilities are between $1 billion-$10 billion, according to the filing. It has around 1,000-5,000 creditors, with the largest unsecured claim coming from investment bank B. Riley.
The miner’s estimated assets are between $1 billion-$10 billion, according to the filing. At the end of the third quarter, Core Scientific’s assets stood at $1.4 billion, whereas its liabilities were about $1.3 billion, according to its earnings report.
The bankruptcy of Core Scientific, which accounts for about 10% of computing power on the bitcoin network, operating 143,000 mining rigs and hosting another 100,000 is the biggest one yet and is set to send shockwaves in an already crumbling industry.