(Kitco News) – Core Scientific, one of the world’s largest publicly traded Bitcoin mining companies, is on the brink of insolvency according to forms filed with the United States Securities and Exchange Commission (SEC) on Oct. 26.
The company indicated that it will not be able to make payments owed to creditors in late October and early November due to the lack of operating capital in its treasury. Low Bitcoin prices, an increase in the cost of electricity and increases in the Bitcoin hash rate were cited as reasons for the cash crunch.
The firm also cited its ongoing litigation with Celsius as putting a strain on its financial resources. Core Scientific has claimed that it is losing approximately $53,000 per day to cover the increased electricity tariffs for hosting mining equipment that Celsius refuses to pay for.
Payments due in the near future include monies owed for “equipment and other financings, including its two bridge promissory notes,” the SEC filing stated.
CORE SCIENTIFIC, One of the Largest Public BITCOIN Miners, On Brink of Bankruptcy
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