Core Scientific Secures Approval to Emerge and Re-list on Nasdaq by January 2024

Core Scientific, a provider of blockchain computing data centers and software solutions, has received the approval of the United States Bankruptcy Court for the Southern District of Texas to emerge and be relisted on the Nasdaq by the end of January 2024. The approval confirms the Chapter 11 plan of reorganization, which will see shareholders granted shares of Core Scientific’s new common stock and warrants, making up approximately 60% of the company’s new equity. The exercise of warrants and the issuance of new shares will enable the repayment of the company’s existing debt, reducing it by approximately $1 billion. Core Scientific’s CEO, Adam Sullivan, expressed excitement about the company’s reorganization, highlighting the growing demand for Bitcoin and high-value compute and the opportunity to create value for shareholders. The reorganization plan also includes the equitizing of around $400 million in claims and a reduction in annual debt service by approximately $60 million. The company has also secured $95 million in new-money exit capital through equity rights offerings and new-money financing. Core Scientific sought bankruptcy protection in 2022 due to industry challenges during the crypto winter but has seen a resurgence in the Bitcoin market, leading to its exit from bankruptcy.