Core Scientific Mining to file for bankruptcy

One person familiar with the matter said, Core Scientific Inc, one of the biggest publicly traded mining companies in the United States, will file for Chapter 11 bankruptcy protection.

The company will file for bankruptcy protection in Texas early on Wednesday morning but will not liquidate, according to the report released late on Tuesday. It said it will continue to operate normally while reaching a deal with senior security noteholders.

One of the largest creditors of Core Scientific B. Riley Financial Inc offered $72 million last week to avoid the mine's bankruptcy.

The Austin, Texas-based miner, which is located in Georgia, Kentucky, North Carolina, and North Dakota, mines digital assets, including coins like bitcoin and ether.

A slump in cryptocurrencies prices and soaring energy rates have put a strain on the miners' profitability. The extreme market conditions have resulted in bankruptcies of other major criptocurrencies such as Voyager Digital Ltd and Celsius Network.

The litigation with Celsius Networks LLC and its affiliates impacted Core Scientific.