Bankruptcy of bitcoin (BTC) miner Core Scientific: its shares jumped 273%

Hertz, which declared bankruptcy in May 2020, rose from its ashes, like a phoenix, 16 months later. The renewed interest of Americans in travel after the pandemic, the increase in demand for rental cars and the contribution of new money by financial partners allowed him this triumphant return. Core Scientific, the world’s first BTC miner that filed for bankruptcy last Wednesday, could follow suit given the evolving situation.

Bankruptcy filing is good for Core Scientific (CORZ) shares

Core Scientific shares soared a record 273% just one day after the bitcoin miner filed for bankruptcy

Bloomberg revealed that Core Scientific shares jumped 273% a day after it filed for bankruptcy. Never seen ? Not really, since Hertz Global Holding Inc.Ford, Delta and JCPenney met the same fate for the Texas bitcoin miner.

According to Matthew Kimmell, digital asset analyst at CoinShares, the reason for the sudden rise is as follows:

Perhaps after seeing the list of creditors and assets in hand, investors could have regained some confidence that there will indeed be a bright future. This is not an FTX-like situation, where they are heavily weighted in the liability category versus the asset category. »

And speaking of assets and liabilities, the bitcoin miner reportedly came up with different numbers than recently collapsed crypto companies. Indeed, his file includes in particular assets valued at 1.4 billion dollars, against 1.3 billion in liabilities.

50 bitcoins per day mined by Core Scientific

Core Scientific admits mining 50 BTC daily, or more than $800,000. In October alone, this 130,000 machine strong miner claimed to have pocketed 1,295 bitcoins. However, the rise in energy prices and the bear market have not helped its situation.

Bloomberg clarified that this jump experienced by Core Scientific shares does not change the fact that they are among the worst performing stocks in the United States for 2022. The $11 per share fell to minus 99% to trade at 5 cents each last Wednesday.

It should be noted that the bankruptcy filed by Core Scientific does not mean cessation of its activities. According to Russell Cann, director of mining at Core Scientific, the crypto mining company continues to be operational. This application for protection under Chapter 11 of the bankruptcy law will effectively restructure its balance sheet. Hopefully Core Scientific won’t have the same contagion powers as FTX.

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