Monday, February 6, 2023
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Will A Bankruptcy Of Bitcoin Miner CORZ Impact The Price?

by Jake Simmons
October 28, 2022
in Cryptocurrency
Reading Time: 3 mins read
A A
0
Home Cryptocurrency
Share on FacebookShare on Twitter


The largest publicly traded Bitcoin miner in the U.S. by hash rate and mining fleet, Core Scientific (CORZ), issued a bankruptcy warning in a filing with the SEC on Oct. 26.

Shortly thereafter, the stock took a nosedive. The stock plummeted from $1.02 to $0.22. While the CORZ stock was trading at $10.43 at the beginning of the year, it is now down 97% year-to-date.

Notably, the Bitcoin price was unimpressed by the news. As NewsBTC reported, a Bitcoin miner capitulation is currently the biggest intra-market risk. Therefore, it is questionable whether the risk of a capitulation event is now over or Core Scientific is the harbinger of a bigger crash?

Bitcoin Miner Core Scientific On The Ropes

Documents filed with the U.S. Securities and Exchange Commission reveal that there is a possibility of bankruptcy. The company said it will not make its debt payments due in late October and early November.

In addition, Core Scientific announced that holders of its common stock “could suffer a total loss of their investment.” Cash could be depleted by the end of the year or sooner, in part because Celsius arguably owes the miner $5.4 million.

However, responsible for the Bitcoin miner’s situation, however, according to management, are that “operating performance and liquidity have been severely impacted by the prolonged decrease in the price of bitcoin, the increase in electricity costs,” as well as “the increase in the global bitcoin network hash rate”.

Compass Point analysts believe bankruptcy is a real possibility, as CNBC quotes:

Still, without knowing how discussions are going with CORZ’s creditors, we think a scenario where CORZ has to file for Chapter 11 protection has to be taken seriously, especially if BTC prices decline further from current levels. 

For the moment, the Bitcoin miner is considering various options for raising additional capital.

All-Clear For The Bitcoin Price For Now?

The SEC document gives the all-clear for the bitcoin price in that a sale of Core Scientific’s bitcoin holdings has already taken place. The company now holds only 24 Bitcoins; 1,027 Bitcoins were already sold last month.

In this respect, Core Scientific’s treasury is not more of a concern, but rather the overall bad state of the Bitcoin mining industry. The industry is suffering from skyrocketing electricity costs as well as the depressed Bitcoin price.

Many larger Bitcoin mining companies ordered new hardware when the price was much higher. Due to long delivery times, they received the machines much later, at a time when the hash price was already much less profitable.

Another well-known Bitcoin miner, Compute North, filed for bankruptcy back in September and owes at least 200 creditors up to $500 million,as Bitcoinist reported.

The next few months will therefore have to reveal whether it will take a deeper shakeout to flush unprofitable and over-leveraged miners out of the market. Core Scientific had the highest debt to equity ratio in the industry at 3.5x.

Currently, the miner net position change continues to indicate that the industry is exerting selling pressure on the market. The metric shows that the total number of Bitcoins sold by miners was higher than the amount held on every day throughout October.

Bitcoin miner putting selling pressure on the market. Source: Twitter 

From a technical perspective, BTC looks ´poised to reach long territory’ soon. For now, the price needs to sweep the low and should hold the level at $19.9K.

BTC USD TradingView
Bitcoin consolidation above $20.000. Source: TradingView





Source link

Tags: bankruptcyBitcoinCORZImpactMinerPrice
Previous Post

Rates Spark: The ECB Confirms The Market Bias

Next Post

EU reaches deal to ban sale of new combustion-engine cars by 2035 | Business and Economy News

Related Posts

Starkware Plans to Open Source Key Tech Linked to Starknet Prover – Bitcoin News

by Jamie Redman
February 6, 2023
0

At the Starkware Sessions 2023 event, held at the Cameri Theatre in Tel Aviv, Israel, Starkware co-founder Eli Ben-Sasson informed...

Spanish rehab center adds crypto trading addiction to services list

by Euro Times
February 6, 2023
0

A luxury rehabilitation center in Spain has recently added services aimed at treating a relatively new kind of addiction —...

Bitcoin BTC Price Not Ready to Soar as Investors Await Fed Chair Speech, More Earnings

by Sam Reynolds
February 6, 2023
0

“Startups were able to raise uncharacteristically sized rounds for their stage, commonly acquiring multiple years of runway pre-product, while over...

The IBM–Maersk blockchain effort was doomed to fail from the start By Cointelegraph

by Cointelegraph
February 6, 2023
0

© Reuters Blockchain projects continue to experience failure rates in excess of 90%, and it seems that with every passing...

Russia’s Largest Private Bank Launches Digital Asset Platform – Finance Bitcoin News

by Index Investing News
February 6, 2023
0

Alfa-Bank, one of the major Russian banking institutions, has established its own platform for digital financial assets. The launch became...

GRT/USD Could Stay Above $0.12 Resistance

by Azeez Mustapha
February 5, 2023
0

Join Our Telegram channel to stay up to date on breaking news coverage The Graph price prediction shows that GRT...

Next Post

EU reaches deal to ban sale of new combustion-engine cars by 2035 | Business and Economy News

'Prebunking' teaches people how to spot disinformation : NPR

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Renault, Nissan boards sign off on alliance revamp By Investing.com

February 6, 2023

Adani sell-off extends; India’s opposition lawmakers launch protests By Reuters

February 6, 2023

MARKET LIVE: Sensex off day’s low, down 350 pts; Broader indices firm

February 6, 2023

Starkware Plans to Open Source Key Tech Linked to Starknet Prover – Bitcoin News

February 6, 2023

Asia markets mixed as U.S. jobs report show room for more hikes

February 6, 2023

Beyonce breaks Grammy record as Harry Styles takes best album | Music News

February 6, 2023
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Renault, Nissan boards sign off on alliance revamp By Investing.com

Adani sell-off extends; India’s opposition lawmakers launch protests By Reuters

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In