One of the largest Bitcoin miners has gone bankrupt

According to the latest public reports on Core Scientific’s site from October, the company mined 1,213 bitcoins in the month of September, making 40.4 bitcoins per day. In the same month, Core sold 1,576 bitcoins at an average price of $20,460 per bitcoin, generating a total revenue of approximately $32.2 million. Every month since then, the company has been selling almost everything mined in an attempt to stay afloat, but it seems the factors in the sector are hard to overcome, and they have also played quite a risk by taking new equipment on lease. The idea that the profit it will generate will be sufficient if the short-term crises are overcome is fueled by the incorrect projection of the value of Bitcoin at the end of the year and its mining complexity. At the end of the third quarter, CORZ had total debt of about $960 million, excluding adjustments to accounting reserves of just under $200 million, according to FT data.

The company is still generating positive cash flow, but that cash isn’t enough to pay off debt owed on leased equipment, according to people familiar with the matter interviewed by Coindesk.

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