Texas-based Bitcoin (BTC) mining firm Core Scientific has announced that it is in serious financial trouble.
The company stated that it has been severely affected by the prolonged decline in the Bitcoin price, the rise in electricity costs, the increase in the global bitcoin network hashrate, and the lawsuit filed with crypto lending company Celsius.
Bitcoin Mining Firm Core Scientific Remains 24 BTC
According to the statement made by the US Securities and Exchange Commission (SEC), Core Scientific’s cash resources will run out by the end of the year.
Celsius, which filed for Chapter 11 bankruptcy protection earlier this year, invested $54 million in Core Scientific in July 2021 as part of a more than $200 million investment in Bitcoin mining. However, Core Scientific was unable to get its due from Celsius and is dealing with litigation.
On the other hand, the Bitcoin mining company is facing a difficult process due to the decline and cost increases in the crypto market. So much so that Core Scientific is currently unable to make payments for equipment and financing.
On September 30, Core Scientific held 1,031 BTC and approximately $29.5 million in cash. According to SEC filings, the company currently has only 24 BTC and $26 million in cash in its funds.
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