The world of cryptocurrencies is going through a difficult time due to the collapse of the giant stock market FTX, the collapse of Bitcoin to recent lows. This situation caused investors to be worried and timid about cryptocurrencies, and even caused some companies in the industry to go bankrupt.
Now, it has been revealed that the crypto money mining area, which has grown in recent years, has also been affected by the bad trend. US-based Core Scientific, one of the 15 largest crypto mining companies in the world, has filed for bankruptcy in the country.
The decline in Bitcoin and rising mining costs led to the bankruptcy of the giant company
The company, headquartered in Texas, filed for bankruptcy in the state today. The company stated that it has reached a restructuring agreement with its lenders and creditors, adding that it plans to continue producing Bitcoin.
The bankruptcy of the company, which operates at its facilities in five US states, came after the price of cryptocurrencies fell and the cost of energy used in the mining process increased globally. The crypto giant also stated in its bankruptcy filing that the decline of Bitcoin, the inability to receive payments from some of its customers and the increase in electricity costs caused this.
Market value has bottomed out in the last 8 months
The market value of Core Scientific, a public company listed on the Nasdaq, reached 3 billion in April, according to data obtained by the Financial Times from FactSet. However, this amount has dropped below $100 million with a great decline since then and has almost hit the bottom.
Core Scientific was also negatively impacted by the bankruptcy of crypto lending firm Celsius Network, which collapsed last summer. The two companies disagreed over the service Core provided to Celsius. The bankruptcy of Celsius, which was indebted to Core, also increased the financial problems of the giant mining company.
The leading cryptocurrency Bitcoin (BTC), which has reached the lowest levels of the last two years this year, is trading at around $ 16,779 at the time of writing this news.
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