Core Scientific in "substantial doubt" to continue without more money
The Bitcoin miner has warned that its cash reserves could be depleted by the end of 2022 or sooner as it cuts its expenses, including defaulting on loans.
New
Bitcoin (BTC) miner Core Scientific has warned of "substantial doubt" over its ability to continue operations over the next 12 months given the financial uncertainty.
In its quarterly report filed with the U.S. Securities and Exchange Commission (SEC) on November 22, the company said it had accumulated a net loss of $434.8 million during the third quarter from 2022.
After net losses of $862 million in the second quarter, its total net losses for 2022 are $1.71 billion.
The company suggested that in order to continue operations until November 2023, it would need additional cash, adding that it expected its cash resources “to be exhausted by 2022 or earlier.”
"Given the uncertainty surrounding the Company's financial condition, substantial doubt exists as to the Company's ability to continue operations through November 2023.
He also said he had doubts about his ability to raise funds through funding or capital markets, citing "uncertainties and current market conditions" which have reduced the availability of these types of liquidity sources.
Rising energy costs, falling Bitcoin price and rising hash rate have also been cited as reasons why it is suffering from a liquidity crunch, adding that "doubt substantial exists" with its ability to continue operating as its "very difficult to predict when or if Bitcoin prices will recover or energy costs will decline."
Core Scientific previously reported in an SEC filing on Oct. 26 that a low Bitcoin price, rising electricity cost, and bankrupt crypto lender Celsius's refusal to repay a $2 loan .1 million could result in the depletion of its cash resources. end of 2022 or soon...
The Bitcoin miner has warned that its cash reserves could be depleted by the end of 2022 or sooner as it cuts its expenses, including defaulting on loans.
New
Bitcoin (BTC) miner Core Scientific has warned of "substantial doubt" over its ability to continue operations over the next 12 months given the financial uncertainty.
In its quarterly report filed with the U.S. Securities and Exchange Commission (SEC) on November 22, the company said it had accumulated a net loss of $434.8 million during the third quarter from 2022.
After net losses of $862 million in the second quarter, its total net losses for 2022 are $1.71 billion.
The company suggested that in order to continue operations until November 2023, it would need additional cash, adding that it expected its cash resources “to be exhausted by 2022 or earlier.”
"Given the uncertainty surrounding the Company's financial condition, substantial doubt exists as to the Company's ability to continue operations through November 2023.
He also said he had doubts about his ability to raise funds through funding or capital markets, citing "uncertainties and current market conditions" which have reduced the availability of these types of liquidity sources.
Rising energy costs, falling Bitcoin price and rising hash rate have also been cited as reasons why it is suffering from a liquidity crunch, adding that "doubt substantial exists" with its ability to continue operating as its "very difficult to predict when or if Bitcoin prices will recover or energy costs will decline."
Core Scientific previously reported in an SEC filing on Oct. 26 that a low Bitcoin price, rising electricity cost, and bankrupt crypto lender Celsius's refusal to repay a $2 loan .1 million could result in the depletion of its cash resources. end of 2022 or soon...
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