Core Scientific Creditors Tap Legal Adviser With Bitcoin Miner in Trouble
- Creditor group working with Paul Hastings to assess options
- Bitcoin miner warned of cash crunch and potential bankruptcy
Power cables and ethernet cables connected to mining rigs at a cryptocurrency mining center.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
A group of Core Scientific Inc. convertible bondholders is working with restructuring lawyers at Paul Hastings as the company weighs a potential bankruptcy, according to people with knowledge of the situation.
Investors were rattled after Core Scientific, one of the world’s largest miners of Bitcoin, warned last week that it may run out of cash by the end of the year and could seek relief by filing for bankruptcy. The company’s stock slumped to a low of roughly 20 cents following the disclosure.