Crypto mining firm Core Scientific Inc. won court approval to exit bankruptcy and implement a restructuring plan that trims about $400 million in debt from its balance sheet and fully repays company creditors thanks largely to a turnaround in Bitcoin prices over the last year, Bloomberg News reported. Bankruptcy Judge Christopher Lopez said yesterday that he would confirm Core Scientific’s chapter 11 exit plan, a decision that clears the firm to emerge from bankruptcy later this month. Core Scientific said during a court hearing that the company anticipates its shares will be re-listed on the Nasdaq on Jan. 24. Core Scientific filed for chapter 11 in December 2022 amid falling crypto prices and a string of major industry failures including the bankruptcies of Sam Bankman-Fried’s FTX, crypto lender Celsius Network LLC and crypto hedge fund Three Arrows Capital. But Core Scientific and its creditors fared far better in chapter 11 than its bankrupt peers and saw its fortunes turn thanks to higher Bitcoin prices and lower energy costs. Bitcoin was trading on Tuesday at more than $43,000 — up from about $16,800 when Core Scientific filed chapter 11 in late 2022. Core Scientific was also able to strike a series of settlements with different creditor groups, including lender B. Riley.
