Core Scientific says reorganization plan is confirmed by bankruptcy court

Crypto mining firm Core Scientific is set to emerge from bankruptcy after a court confirmed its reorganization plan, the company announced on Tuesday.

"The United States Bankruptcy Court for the Southern District of Texas has confirmed the Company’s Chapter 11 plan of reorganization," Core Scientific said, adding that it's planning to re-list on Nasdaq by the end of January.

Under the reorganization plan, the firm's shareholders will receive approximately 60% of Core Scientific's new equity, and the company will pay its debt in full. 

Earlier in January, Core Scientific announced closing "an oversubscribed $55 million Equity Rights Offering."

"Today’s plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success," Core Scientific CEO Adam Sullivan said in the statement.

"With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale," he added.

Core Scientific filed for bankruptcy protection in December 2022.