Posted on 11/23/2022 8:11:36 AM PST by Presbyterian Reporter
Core Scientific (CORZ), the world's largest publicly listed miner by computing power, ended October with $32.2 million in cash and 62 BTC ($975,000) and reiterated that it may run out of money before the end of the year.
The company first warned of bankruptcy risk about a month ago, sending its shares plummeting about 80% on Nasdaq. The miner had 1,051 BTC and $29.5 million in cash at the end of September.
Core Scientific is one of several miners struggling to keep afloat as rising energy prices increase costs, and a stubbornly low bitcoin price slashes revenue. Compute North filed for Chapter 11 bankruptcy in late September, and Iris Energy has received a notice of default on its loans. Argo Blockchain (ARBK) and Greenidge Generation (GREE) have also said they are strapped for cash.
"We anticipate that existing cash resources will be depleted by the end of 2022 or sooner," Core Scientific said in its third-quarter earnings report, filed with the U.S. Securities and Exchange Commission on Tuesday. "Depending on our assumptions regarding the timing and ability to achieve more normalized levels of operating revenue, the estimates of amounts of required liquidity vary significantly. Similarly, it is very difficult to predict when or if bitcoin prices will recover or energy costs will abate."
The mining firm is in talks with creditors to restructure its debt and raise capital. One lender, BlockFi, has been caught in the crossfire of crypto exchange FTX's collapse. The exchange had promised to bail out BlockFi with a $400 million credit facility, and that's now not likely to materialize. Core Scientific had about $54 million outstanding to BlockFi as of Sept. 30.
Core Scientific has been affected by the bankruptcy of lender Celsius's mining arm, one of its biggest clients. Celsius Mining filed for Chapter 11 bankruptcy in July, and in September sued Core Scientific claiming that it violated automatic stay terms. Core Scientific claims Celsius owes it $5.2 million as of Sept. 30.
CORZ CORE SCIENTIFIC INC COMMON STOCK
52 Week Range 0.1212 11/09/2022 13.70 11/29/2021
Invest in crypto they said.....you’ll clean up they said.....totally secure they said.....
I can piss my own money away.....I don’t need any help.
I’m concerned that the computing power collected by these mining firms may be repurposed for criminal or unethical behavior. DOS attacks, Bot attacks on social media, identity theft, election thefts, etc.
Telling you the Federal Reserve is bankrupting these outfits paving the way for FedCoin next year.
“The miner had 1,051 BTC and $29.5 million in cash at the end of September.”
Did they check under the couch cushions?
Well, for most of those type of illegal operations you don’t want to actually own the computing power you are using. Because then they’ll trace it right back to you and you’ll go to jail.
Hackers would much rather use YOUR and MY computing power to do those things, and leave a more twisted path for the investigators to follow when they try to trace the attacks back to their origin.
If they are used to rig elections, then there will be no tracing back by the MSM or the Swamp.
Here's the reasoning:
Don’t quit your day job.
The computers that you have to worry about rigging elections are the ones that are inside the government offices.
“””I’m concerned that the computing power collected by these mining firms may be repurposed”””
On the other hand the massive amount of electricity being consumed to do this computer mining might lead to lower electrical prices for the rest of us.
Looks like P.T. Barnum was right all along
Does anyone think that gold will increase steeply in the next few months now that crypto is no longer very viable?
Crypto was touted as a currency, bought and sold as an investment, and finally crashing like a Ponzi scheme. Not all of them yet, the exchanges seem to be going first.
I suspect it was that way by design, not of the cryptos necessarily, but by the megalomaniacs trying to control the world. We all know a few of their names.
Greenidge Generation (GREE) have also said they are strapped for cash.
~20mi from here
Here’s my take on this whole crypto crash.
Lazy tech guy 1: Hey, I got a great idea. Let’s start something called crypto currency because paper money/precious metals are so ancient history.
Lazy tech guy 2: But what is crypto currency?
Lazy tech guy 1: Exactly. It is whatever we say it is!
Lazy tech guy 2: But where does it come from?
Lazy tech guy 1: Computer mining?
Lazy tech guy 2: Sounds cool, but how do we make money?
Lazy tech guy 1: we tell folks each Coin we find from computer mining is wot several thousands of dollars. And then regular people will invest their real money and we can cash in.
Lazy tech guy 2: And after several years when the world catches on to this tech voodoo currency scam, we’ll be sitting on the beach sipping mai tais and living the dream.
A. Start with a large fortune
DING DING DING!!
We have a winner!
Wonder what all the Free Republic guys will do when they can’t work under the table any longer once Fed Coin kicks in? LOL
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.