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.
Best explanation I’ve ever heard.
Bttt
Winner!
Remember—Blockchain will keep your money safe....
Bwahahahahahaha.
That’s not how ASIC miners work...they’re not general purpose computing devices. It would be cheaper to build new server farms than to try to repurpose the miners.
It is my understanding that those miners actually keep the crypto going! If all go out of business, there would be no crypto!
It is all a mystery to me, too. Everything I read about these outfits is written in terms of $US instead of the mystery “currency” - which tells you a lot.
There is a well organized plan by the marxists to destroy independent crypto, so the resistance to its designated replacement won’t be as large.
CBDD.
The End Of Freedom.
Well, that is unlikely since profitable machines in this game were purpose built for “mining”.
Old machines go to the landfill as soon as it becomes unprofitable to sell their output to the next idiot.
Not only is crypto a ponzi but also a massive waste of hardware and resources...
They were still saying it just before this crash: The Bitcoin Field Guide exudes pre-crash optimism.
That makes sense. I thought these were banks of graphics cards that could be reprogrammed.
The days of GPU mining Bitcoin are far, far away in the past.
Like every other investment/speculative asset, the vast majority are owned by a relative few.
Going forward if crypto ever took off among the general public, the general public will be royally screwed. This is because there will be a cost to using, exchanging, or acquiring bitcoin. If there is any bottleneck in the system, then the highest order "stakeholders", i.e. the guys with the most bitcoin will get to trade first and more cheaply. They will be able to use this to game the system as they can trade ahead of drops in bitcoin values and perform pump-and-dump operations at will.
All crypto will go down somehow
Fed CBDC will be the only game in town. /shiny side out
(and finally crashing like a Ponzi scheme)
Yep
You are a great man of science!!
🤣😂😆👍👍👍
This stuff is stupid. Nothing of real value to the world is produced for all the expenditure.
Good riddance. All that energy being expended for ether coins.
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