Core Scientific Stocks Jump 200%, Saved From Bankruptcy

Core Scientific, a Bitcoin mining company, has seen its stock price increase by about 200% in the previous four days. 

This is due to the favourable response of a funding request from a current creditor on December 14.

The troubled mining company’s stock rose from slightly over 13 cents on the 12th to almost 40 cents by the 15th of the month, a 198% increase.

Marketbeat, a financial news agency, reports that on December 15th, investors bought 6,572 call options, which is 136% more than the typical volume of 2,780. 

This suggests that many investors are optimistic about the company and expect the price to continue growing. 

Some Bitcoin enthusiasts were also buying stock in the company, anticipating a massive profit once the financing plan was carried out.

Despite recent increases, Core Scientific’s share price is still 95% less than if compared with what it was at the beginning of 2022, which can be the result of fear in holders of the company who were prone to suffer a total loss of their investments. 

The bitcoin miner, released a filing in October indicating that it is considering bankruptcy as it shows incapability to pay debts in the coming months due to a lack of cash flow. 

The share price of the company plummeted as a result. 

Core Scientific has been Bailed Out

However, Financial services platform B. Riley outlined a $72 million financing plan in a letter to Core’s shareholders and lenders on December 14. They believe this plan will be sufficient to keep the miner from filing for Chapter 11 bankruptcy. 

According to B. Riley, Core will have enough operating capital to last for two years with the funding, and their analyst estimates that at a Bitcoin price of $18,000, the miner will make around $165 million per year in profit, with an additional $20 million for every $1,000 increase in price.