Bitcoin miners had a rough period in 2022 with several, such as Core Scientific, Celsius Mining and Compute North, filing for bankruptcy as they were overleveraged and not prepared for higher energy costs.Major bitcoin miner Core Scientific (CORZ) , on January 23, 2024, revealed that it had successfully completed its reorganization and emerged from Chapter 11 bankruptcy with a strengthened balance sheet and had listed on Nasdaq.Related: Luxury apparel brand files for Chapter 11 bankruptcyCore Scientific's shares on Aug. 26 closed 0.84% higher at $10.85. The price of Bitcoin was $63,933.34 at last check on Aug. 26. Core Scientific's reorganization reduced its debt by $400 million after converting equipment lender and convertible noteholder debt to equity.In 2023, Core Scientific produced 13,762 bitcoin from its owned fleet of miners and another 5,512 bitcoin on behalf of its hosting customers.The company, however, on Aug. 6, embarked on an expanded deal with CoreWeave that could generate $6.7 billion over 12 years as it delivers an additional 112 megawatts of computing infrastructure to the Nvidia-backed startup. The expanded commitment is expected to add $2 billion in cumulative revenue to the existing $4.7 billion in projected revenue over the 12-year term.Core Scientific provides digital infrastructure for bitcoin mining and high-performance computing. It operates dedicated, purpose-built facilities for digital asset mining and is a premier provider of digital infrastructure, software solutions and services to third-party customers.Related: Popular burger chain faces likely Chapter 11 bankruptcyThe company employs its fleet of computers to mine bitcoin for its own account and provides hosting services for large bitcoin mining and high-performance computing customers at eight operational data centers.More bankruptcy:Struggling Home Depot rival files for Chapter 11 bankruptcyPopular Italian restaurant chain files for Chapter 11 bankruptcyAnother distressed trucking company files Chapter 11 bankruptcyGlobal cryptocurrency platform and bitcoin miner Celsius filed for Chapter 11 bankruptcy in July 2022 and emerged on Jan. 31, 2024, and reorganized its mining business as Ionic Digital.Compute North in September 2022 filed for Chapter 11 to liquidate as profits declined and energy costs rose, preventing the company from repaying debt owed to its lenders.
Bitcoin miner Rhodium files for Chapter 11 bankruptcy.Kevin Levick
Rhodium files for bankruptcy Most recently bitcoin miner Rhodium Enterprises (RHDM) on Aug. 24 filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas in Houston seeking to restructure its business after failing to repay $54 million in loans to its lenders that were due July 30, 2024, TheMinerMag reported.The Houston-based technology company, which filed on behalf of lead debtor Rhodium Encore and five affiliates, listed $100 million to $500 million in assets and $50 million to $100 million in liabilities in its petition.Rhodium had reportedly raised $78 million for two subsidiaries in 2021. Creditors had previous suggested the debtor could sell its Temple, Texas, site and use the funds to repay its loans, TheMinerMag said.The debtor is also seeking court approval to assume certain executory contracts with Whinstone USA, the colocation subsidiary of Riot Platforms. The parties' business relationship had been strained and led to an ongoing arbitration case where Rhodium is seeking about $67 million in damages.Related: Veteran fund manager sees world of pain coming for stocks
