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 will not 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, one of the biggest creditors, 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.
There has been a lot of pressure on miners as their profitability dropped due to a slump in criptocurrency prices and soaring energy rates. 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.