Winter weather for Bitcoin – The crypto winter is painful for everyone, especially for the bitcoin miners (BTC). Recent news confirms this. Today it’s the BTC Core Scientific miner who appears to be in trouble. According to some information, he is about to file a request protection against bankruptcies under Chapter 11 of Texas law. Explanations.
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Bankruptcy of Core Scientific: BTC miner sees red
According to CNBC, Core Scientific would be about to file for bankruptcy protection under the Chapter 11 of the law in force in the United States. As a reminder, Core Scientific is a bitcoin mining company that is listed on the stock exchange and recognized in the industry.
A source familiar with the matter has noted that Core Scientific’s problem is that it unable to repay debts, although its turnover is positive. This debt would be mainly due to the rental of the equipment. But then, why such a gap despite these positive results?
Of course, the crypto winter can be tough on cryptocurrency miners. They actually have to face the rising energy costswhile having to manage the decline in the value of the king of cryptocurrencies. This can be especially tricky when the value of Bitcoin, which is often considered the most influential cryptocurrency, declines. Miners must then find ways to minimize costs, while ensuring that their business is profitable in the long term.
Although the filing for bankruptcy protection has been confirmed by multiple sources, the BTC miner, Core Scientificconfirm continue its activities of mining. In addition, last week, one of Core Scientific’s main creditors confirmed the granting of a additional $72 million loan in order to avoid the bankruptcy of the company.
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