BTC Mining Giant, Core Scientific Files for Chapter 11 Bankruptcy- Here’s why

• Mining giant, Core Scientific filed for Chapter 11 bankruptcy protection in Texas on Wednesday morning.
• Core Scientific reportedly plans to continue mining Bitcoin throughout its bankruptcy, triggered by slumping revenue and unpayable debts.

Core Scientific, the largest publicly traded cryptocurrency mining company based in the U.S., filed for Chapter 11 bankruptcy protection on Wednesday morning. The company cited falling revenue and Bitcoin (BTC) prices as the reasons for its bankruptcy filing.

Core Scientific is a blockchain computing data center provider and digital asset mining company. The company mines Proof-of-Work digital assets, mainly Bitcoin. However, the price of Bitcoin has fallen by more than 50% since its peak in November, and this has made it difficult for Core Scientific to make a profit.

In addition to the falling price of Bitcoin, Core Scientific has also been impacted by rising electricity costs. The company operates a large number of data centers that consume a lot of electricity. The rising cost of electricity has made it more expensive for Core Scientific to mine Bitcoin.

As a result of the falling price of Bitcoin and rising electricity costs, Core Scientific has run out of cash. The company had warned investors in October that it might need to file for bankruptcy if the market conditions did not improve.

Core Scientific is not the only cryptocurrency mining company that has filed for bankruptcy in recent months. In July, the mining company Celsius Network filed for bankruptcy protection. In June, the mining company Voyager Digital Ltd. filed for bankruptcy protection.

The bankruptcies of Core Scientific, Celsius Network, and Voyager Digital Ltd. are a sign of the challenges facing the cryptocurrency mining industry. The price of Bitcoin has fallen sharply in recent months, and this has made it difficult for cryptocurrency miners to make a profit. In addition, the rising cost of electricity is also making it more expensive for cryptocurrency miners to operate.

It remains to be seen whether Core Scientific will be able to emerge from bankruptcy protection. However, the company’s bankruptcy filing is a sign of the tough times that the cryptocurrency mining industry is facing.