Core Scientific to file for bankruptcy protection

One person familiar with the matter said that Core Scientific Inc, one of the biggest publicly traded cripto 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 won't liquidate, the report said, adding that 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 had offered $72 million last week to avoid the miner's bankruptcy.

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

The decline in cryptocurrencies and soaring energy rates have put miners under pressure as they have been under severe pressure. 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.