Core Scientific Relists on Nasdaq Amid Bitcoin mining boom

Core Scientific surges back to Nasdaq amidst Bitcoin Mining surge, riding the wave of cryptos  

Core Scientific, one of the largest Bitcoin mining firms in the U.S., has relisted its shares on the Nasdaq stock exchange after completing a reorganization process that reduced its debt by US$400 million. The company, which operates in five states and mines for Bitcoin and other cryptocurrencies, filed for bankruptcy in December 2022, following a sharp decline in Bitcoin prices and an increase in power costs.

The relisting, which took place on Tuesday, January 23, 2024, marks a comeback for Core Scientific, as it coincides with a renewed interest and investment in Bitcoin mining from Wall Street and institutional investors. Bitcoin, the leading cryptocurrency by market capitalization, surged 150% in 2023, reaching a new all-time high of over US$100,000 in December. The demand for Bitcoin mining, which is the process of validating transactions and creating new coins, has also increased, as more miners compete for the limited supply of new Bitcoins.

The relisting also comes after Core Scientific reached a deal with its senior secured noteholders, who hold the majority of the company's debt, to convert their debt into equity. The restructuring plan, which was approved by the bankruptcy court in December 2023, has eliminated US$400 million of debt from the company's balance sheet and has given it a new credit facility and projected operating cash flow to support its multi-year growth plan.

Sullivan said that the bankruptcy process was "very successful" and that it achieved the company's goals of reducing debt and giving it time to pay down any remaining debt over the course of five years. He also said that the company continued to operate and generate revenue throughout the bankruptcy process and that it did not lose any customers or employees.

Core Scientific's relisting on Nasdaq is expected to boost its visibility and credibility in the market, as well as attract more investors and customers. The company's shares, which trade under the ticker symbol "CORZ", closed at US$12.50 on Tuesday, up 25% from the opening price of US$10. The company's warrants, which trade under the symbol "CORZW", closed at US$3.50, up 40% from the opening price of US$2.50.