Core Scientific Given Court Approval To Leave Bankrupt And Listing Back On Nasdaq

Scientific ore has obtained court approval to exit bankruptcy (photo: x @Core_Scientific)

JAKARTA - Crypto mining company Core Scientific has obtained court approval to exit bankruptcy and re-list its "CORZ" shares on the Nasdaq end the 13-month restructuring process.

In a statement on January 16, Core Scientific said its reorganization plan had been approved by a bankruptcy court for Texas's Southern District. The company is targeting an exit date on January 23 and hopes to re-registered on the Nasdaq the following day.

In approval of Chapter 11, existing shareholders will retain approximately 60% of the company's shares. The restructuring plan will also reduce millions of debt from its balance sheet and provide "full recovery" to all creditors' classes.

US Bankruptcy Judge Christopher Lopez reportedly said in a hearing that the plan "provides extraordinary recovery for both unsecured creditors and equity holders."

The plan is also expected to keep more than 240 jobs in the company.

"Today's plan approval is an important moment in our reorganization; we are ready to leave at the end of this month as an even stronger company, with a very well-motivated team aligned for success," said Core Scientific CEO Adam Sullivan.

"With demand for Bitcoin and high-value computing continuing to increase, we look forward to creating value for our shareholders as we carry out our growth plans, balance our balance sheets, and provide superior efficiency on scale."

Core Scientific is one of the largest crypto miners in the United States, generating more than 13,700 Bitcoins mined and 5,500 Bitcoins from jointly placed miners by 2023.

However, a prolonged combination of bearish markets, rising energy prices, increasing mining difficulties, and poor debts given to Celsius crypto companies led the company to file bankruptcy in December 2022. Previously, the company was traded on the Nasdaq Global Select Market with the symbol "CORR" but was removed from the list after the bankruptcy process began.

Core Scientific said the restructuring plan could occur in part due to the "substantial increase" of Bitcoin prices and hash prices since they filed for bankruptcy in December 2022.