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, according to a report released late on Tuesday, 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 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 price of cryptocurrencies fell as miners struggled to keep pace with the rising energy rates and a slump in their prices. The extreme market conditions have resulted in bankruptcies of other major criptocurrencies such as Voyager Digital Ltd and Celsius Network.
Core Scientific was impacted by the litigation with Celsius Networks LLC and its affiliates.