Core Scientific Reports A $400 Million Quarterly Loss; Impending Bankruptcy?

Core Scientific, a company that mines bitcoins (BTC), may be the next to file for bankruptcy after reporting a third-quarter loss of more than $400 million.

The business, which is regarded as the largest publicly traded Bitcoin miner in the US, has now lost a staggering $1.7 billion for the year as a result of a recent SEC filing that indicated a loss of $434 million for the third quarter.

The firm stated in its most recent filing that "management has been actively taking initiatives to cut operational costs, remove and postpone development expenses, reduce and delay capital expenditures, and improve hosting revenues."

In October, Core Scientific acknowledged that company was going to go bankrupt and that it was on the verge of doing so. To help with the evaluation of strategic options, the business has already hired the law firm Weil, Gotshal & Manges LLP as legal counsel and PJT Partners LP as finance counsel.

Core Scientific had $32 million in cash and 62 bitcoins as recently as last month. This was a considerable decrease from the company's prior position of 8,000 BTC before the second quarter, when the majority of its bitcoin assets were sold off.