Urgent: New bankruptcy in the digital currency market.. An American giant is falling

Major Bitcoin mining companies file for bankruptcy in America

bankruptcy in America

In the United States, bankruptcy is a legal process that allows individuals and businesses to get relief from overwhelming debt. The most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy, also known as "liquidation" bankruptcy, allows individuals to discharge most of their unsecured debts, such as credit card debt and medical bills, in exchange for giving up some of their assets.

Chapter 13 bankruptcy, also known as "reorganization" bankruptcy, allows individuals to keep their assets and pay off their debts over a period of three to five years. This is typically used by individuals who have a regular income and who want to keep their property.

Businesses, on the other hand, can file for bankruptcy under Chapter 7 or Chapter 11. Chapter 7 is similar to individual liquidation bankruptcy, but it is used to close down a business permanently. Chapter 11 is a reorganization bankruptcy and it allows the business to stay open and continue operating while restructuring its debt.

It's important to note that bankruptcy will stay on an individual's credit report for up to 10 years and can make it difficult for that person to get credit in the future. It's advisable to consult a bankruptcy attorney before filing for bankruptcy.

Core Scientific has filed for bankruptcy in Texas

One of the largest US-listed Bitcoin miners has filed for bankruptcy, as the companies grapple with falling cryptocurrency prices and rising costs for the energy-intensive business of producing cryptocurrencies.

On Wednesday, Core Scientific filed for Chapter 11 bankruptcy in Texas, where it is headquartered. According to the Financial Times account.

The company said it plans to continue operating and producing bitcoin while closing a restructuring deal with lenders and creditors.

The Nasdaq-listed cryptocurrency miner is a component of the Russell 2000 Index, a widespread benchmark for smaller US companies, meaning its bankruptcy would hurt many investors' wallets as well as deepen the crypto industry's woes.

The company operates facilities in five US states where computers go through complex equations in a race against other participants in the Bitcoin network to create new units of the cryptocurrency.

Core Scientific's stock has fallen 98% this year. "The filing of these cases was necessary due to the company's declining operating performance and liquidity, which suffered from the prolonged decline in the price of bitcoin and the increase in electricity costs required to operate the company's data centers," Core Scientific said in a statement. ..

Bitcoin, the largest cryptocurrency, has fallen more than 65% this year against the dollar, hitting a two-year low.