{"id":514444,"date":"2022-11-23T05:23:44","date_gmt":"2022-11-23T02:23:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/core-scientific-in-substantial-doubt-of-continuing-without-more-cash\/"},"modified":"2022-11-23T05:23:44","modified_gmt":"2022-11-23T02:23:44","slug":"core-scientific-in-substantial-doubt-of-continuing-without-more-cash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/core-scientific-in-substantial-doubt-of-continuing-without-more-cash\/","title":{"rendered":"# Core Scientific in &#8216;substantial doubt&#8217; of continuing without more cash"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26b7729a010\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26b7729a010\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/core-scientific-in-substantial-doubt-of-continuing-without-more-cash\/#%E2%80%9D_Core_Scientific_in_%E2%80%98substantial_doubt_of_continuing_without_more_cash_%E2%80%9C\" >&#8221; Core Scientific in &#8216;substantial doubt&#8217; of continuing without more cash &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Core_Scientific_in_%E2%80%98substantial_doubt_of_continuing_without_more_cash_%E2%80%9C\"><\/span>&#8221; Core Scientific in &#8216;substantial doubt&#8217; of continuing without more cash &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYmMwNDU3MWMtMTY4Mi00NzYwLWJiODEtZjRkN2VkZjNjZDY5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5129e2ea>Bitcoin (BTC) miner Core Scientific has warned of\u00a0 \u201csubstantial doubt\u201d they will be able to continue operations over the next 12 months given financial uncertainty.<\/p>\n<p>In its quarterly report <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1839341\/000162828022030600\/core-20220930.htm\">filed<\/a> with the United States Securities and Exchange Commission (SEC) on Nov. 22, the firm indicated it had accrued a net loss of $434.8 million over the third quarter of 2022.<\/p>\n<p>After net losses of $862 million in the second quarter, its total net losses for 2022 are sitting at $1.71 billion.<\/p>\n<p>The company suggested in order to continue its operations through to November 2023, it will require additional liquidity, adding that it anticipates its cash resources &#8220;will be depleted by the of 2022 or sooner.&#8221;<\/p>\n<blockquote><p>&#8220;Given the uncertainty regarding the Company\u2019s  financial condition, substantial doubt exists about the Company\u2019s ability to continue as a going concern through November 2023.<\/p><\/blockquote>\n<p>It said it also had doubts about its ability to raise funds through financing or capital markets citing &#8220;uncertainties and current market conditions&#8221; which have reduced the availability of those types of liquidity sources.<\/p>\n<p>Rising energy costs, the falling price of Bitcoin, and an increased hash rate were also cited as reasons for why it&#8217;s suffering a liquidity squeeze, adding that further &#8220;substantial doubt exists&#8221; with its ability to continue operating as its &#8220;very difficult to predict when or if Bitcoin prices will recover or energy costs will abate.&#8221;<\/p>\n<p>Core Scientific had previously indicated in an Oct. 26 SEC filing that a low Bitcoin price, the rising cost of electricity, and a refusal from bankrupt crypto lender Celsius to repay a $2.1 million loan could result in its cash resources being \u201cdepleted by the end of 2022 or sooner.\u201d<\/p>\n<p>Core Scientific has taken steps to ease the financial stress it is under, including decreasing operating costs, reducing or delaying capital expenditures, and increasing hosting revenues.<\/p>\n<p>It has also decided not to make payments to some of the firms it has borrowed from and warns that it may be sued for nonpayment and face increases in interest rates as a result.<\/p>\n<p><strong><em>Related: <\/em><em>Turbulence for blockchain industry despite strong Bitcoin fundamentals: Report<\/em><\/strong><\/p>\n<p>Core Scientific is not the only crypto mining firm struggling to continue operating in the current market, with Argo Blockchain seeking to raise additional liquidity via sub<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion for ordinary shares and warning that it is also at risk of ceasing operations if it fails to do so.<\/p>\n<p>Australian mining firm, Iris Energy, is also showing signs of financial distress, revealing in a Nov. 21 filing to the SEC that it had unplugged hardware due to the units producing \u201cinsufficient cash flow.\u201d<\/p>\n<p>The founder of asset manager Capriole Investments, Charles Edwards, has been particularly bearish about the state of Bitcoin mining and noted in a Nov. 22 tweet that this type of response is to be expected when the price of Bitcoin is below the cost of mining.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin miners are &#8220;unplugging their hardware&#8221; because &#8220;the units produce insufficient cashflow.&#8221;<\/p>\n<p>Iris Energy bankrupt. <\/p>\n<p>This is what happens when we spend time below the Bitcoin Electrical Cost. It no longer makes sense for many to run their mining rigs. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/kjrC6j3KVf\">pic.twitter.com\/kjrC6j3KVf<\/a><\/p>\n<p>\u2014 Charles Edwards (@caprioleio) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/caprioleio\/status\/1594989810187657216?ref_src=twsrc%5Etfw\">November 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/core-scientific-in-substantial-doubt-of-continuing-without-more-cash\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Core Scientific in &#8216;substantial doubt&#8217; of continuing without more cash &#8220; Bitcoin (BTC) miner Core Scientific has warned of\u00a0 \u201csubstantial doubt\u201d they will be able to continue operations over the next 12 months given financial uncertainty. In its quarterly report filed with the United States Securities and Exchange Commission (SEC) on Nov. 22, the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":514445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYmMwNDU3MWMtMTY4Mi00NzYwLWJiODEtZjRkN2VkZjNjZDY5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74871,107545,75042,75566,74898,117,70934],"class_list":["post-514444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-electricity","tag-liquidity","tag-mining","tag-report","tag-sec","tag-business","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/514444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=514444"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/514444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/514445"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=514444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=514444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=514444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}