World's Largest Bitcoin Mining Firm 'Core Scientific' Says It May Run Out of Cash: Halts Debt Payments Amid Solvency Risk
The Austin, Texas-based company will not make payments due in late October and early November 2022 with respect to several of its equipment and other financings, it said in a filing Thursday. Creditors may decide to sue the company for non-payment or take action with respect to collateral, it said.
- "Substantial doubt exists about the company’s ability to continue as a going concern for a reasonable period of time," it said in a filing Thursday. Shares of the company, which went public in January, fell about 30% in U.S. pre-market trading.
- The Austin, Texas-based company will not make payments due in late October and early November 2022 with respect to several of its equipment and other financings, it said in a filing Thursday. Creditors may decide to sue the company for non-payment or take action with respect to collateral, it said.
- The firm is exploring a variety of options to address its shortfall, including hiring advisers, raising additional capital or restructuring its existing capital structure.
