Cryptocurrency miner Core Scientific Inc., one of the world’s largest bitcoin miners, said yesterday that it may seek bankruptcy protection as it contends with the prolonged slump in bitcoin prices coupled with an increase in electricity costs. The Austin, Texas-based company is also in litigation with crypto lender Celsius Network LLC, and alleges that Celsius has refused to pay its bills since it filed for chapter 11 itself, threatening Core Scientific’s own financial health. Core Scientific said that due to the impact on its performance and liquidity, it plans to miss debt payments due within days, and has engaged Weil, Gotshal & Manges LLP and PJT Partners as legal and financial advisers. Core Scientific said that as of this week it held 24 bitcoins, compared with 1,051 bitcoins at the end of September. “The company anticipates that existing cash resources will be depleted by the end of 2022 or sooner,” Core Scientific said. Crypto miners have been hit by hard times this year with crypto prices collapsing and the surging cost of electricity, which companies guzzle in large amounts to produce digital coins.
