Bitcoin miner Core Scientific, which has filed for bankruptcy, is trying different methods to get out of bankruptcy.
This time, the company plans to avoid bankruptcy by selling Bitmain coupons. The company has struggled with rising energy prices and low Bitcoin prices last year.
Core Scientific Trying to Avoid Bankruptcy
Cryptocurrency mining company Core Scientific, which filed for bankruptcy in the past few months, filed an urgent request to put up for sale Bitmain coupons worth $6.6 million.
According to the filing, certain conditions applied to the coupons render them useless for Core Scientific’s business. The conditions on coupons that do not fully work for Core Scientific are as follows:
“It can only be used to pay 30 percent of any new S19 Miner order from Bitmain and cannot be exchanged for cash with Bitmain.”
Coupons are limited to S19 models that offer lower hash rate output compared to Bitmain’s latest models.
The company said in a statement:
“Borrowers do not believe that using their liquidity to purchase new S19 Miners despite the availability of Bitmain Coupons is the best use of Borrowers’ cash.”
Additionally, Bitmain coupons will expire between March and April 2023, which the company thinks has exited the Chapter 11 reissue.
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