(Bloomberg) — Core Scientific Inc. surged by a record 73% on Thursday just a day after the Bitcoin miner became the latest cryptocurrency company to file for bankruptcy.
Most Read from Bloomberg
China Is Likely Seeing 1 Million Covid Cases, 5,000 Deaths a Day
Donald Trump’s Taxes Reveal Big Losses: What We Learned So Far, in Charts
Bankman-Fried Released on $250 Million Bond in FTX Case
China to Cut Quarantine for Overseas Travelers From Next Month
US Stocks Snap Two Days of Gains; Dollar Rises: Markets Wrap
It’s a move reminiscent of the one seen in Revlon Inc. earlier this year after its own Chapter 11 filing. Retail traders caused similarly confusing spikes of other bankrupt companies in mid-2020 including Hertz Global Holdings Inc. and JCPenney.
“Maybe after seeing the list of creditors and assets on hand, investors could have gained some confidence that there actually will be a positive future,” said Matthew Kimmell, digital asset analyst at crypto investment firm CoinShares. “It is not an FTX situation, where they are heavily weighted in the liability category versus assets.”
The company’s bankruptcy fillings show that it has $1.4 billion assets against about $1.3 billion liabilities and that makes the miner different from most bankrupt crypto firms. US authorities are pursuing a sprawling investigation into the collapse last month of FTX, which was once one of the world’s biggest crypto exchanges.
On Thursday, Core Scientific received permission to access a $37.5 million loan to help fund its bankruptcy. The Bitcoin miner is working on a plan to restructure its debts that would nearly wipe out existing shareholders.
Read more: Core Scientific Declares Bankruptcy as Crypto Winter Lingers (2)
About 544 million Core Scientific shares changed hands, nearly 3,000% more than its daily average over the past three months. But, unlike with Hertz and Revlon, retail investors appeared to be avoiding the frenzy. Roughly 1,000 buy orders were placed on Fidelity’s platform, according to data provided by the firm, markedly lagging demand for true retail-trader favorites.
Even with Thursday’s sudden rally, Core Scientific remains as one of the worst performing stocks in the US for 2022. After starting the year trading at roughly $11 per share, the company has watched its share price crater by 99% year-to-date, trading as low as 5 cents following Wednesday’s bankruptcy announcement.
Austin, Texas-based Core Scientific is the largest Bitcoin miner by computing power and the first major public mining company that has declared bankruptcy. Bitcoin miners raised billions of dollars from debt financing during the last bull run but have struggled to repay debt due to low Bitcoin prices and power cost hikes.
–With assistance from Bailey Lipschultz and Jeremy Hill.
(Updates with closing prices)
Most Read from Bloomberg Businessweek
Apple Investors’ Loyalty Is Rewarded With a $454 Billion Gift
The Federal Reserve Doesn’t Care About Your Misery
Drugmakers Are Testing Ways to Stop Alzheimer’s Before It Starts
The Chatbots Are Coming for Google
The Two-Word Mantra That Changed Bank of America’s Risk Culture
©2022 Bloomberg L.P.
Related Quotes
WASHINGTON (Reuters) -The U.S. Senate Finance Committee has asked eight major automakers, including General Motors, Tesla and Ford Motor, to disclose whether any of their components are linked to alleged forced labor use in China, according to letters made public on Thursday. In June, a U.S. law took effect banning the import of forced-labor goods from Xinjiang, in a pushback against Beijing's treatment of China's Uyghur Muslim minority, which Washington has labeled genocide. Senate Finance Committee Chair Ron Wyden wrote the chief executives of major automakers inquiring about Chinese supply chain issues, saying "it is vital that automakers scrutinize their relationships with all suppliers linked to Xinjiang."
Bankrupt crypto exchange FTX has asked a U.S. bankruptcy judge for permission to pay its top restructuring lawyers as much as $2,165 per hour, an unusually high rate for a company that cannot afford to repay all of its debts. FTX declared bankruptcy on Nov. 11, collapsing amid a wave of customer withdrawals. Federal prosecutors have charged founder Sam Bankman-Fried with stealing billions of dollars in FTX customer assets to plug losses at his hedge fund, Alameda Research, and two of his former associates have already pleaded guilty.
Former FTX CEO Sam Bankman-Fried appeared in U.S. federal court Thursday on charges that he was the mastermind behind the fraud and illicit movement of customer funds inside his former crypto empire, and a judge agreed that he can be released on $250 million bail.
U.S. Sen. Rick Scott: Republicans must vote to support conservative values by opposing Pelosi-Schumer spending bill.
Pakistan, Cambodia, India and South Korea – have made the shortlist for the 2023 Oscars Best International Feature Film category. On Wednesday, the Academy of Motion Picture Arts and Science unveiled the 15-film shortlist.
(Reuters) -Used-car retailer CarMax Inc said on Thursday it was pausing some hiring, halting share buybacks and cutting expenses after reporting an 86% drop in third-quarter profit as the industry struggles to offload inventory amid waning demand. "CarMax is battling a used-vehicle recession," Evercore ISI analyst Michael Montani said, adding that pressure on wholesale sales intensified from the second quarter. In response to challenging industry conditions, CarMax said it slowed car buying in the third quarter and cut marketing and capital expenditures.
A Hendersonville, North Carolina, Chick-Fil-A is under fire for using food as payment and
Maple Finance Co-Founder and CEO Sid Powell joins Yahoo Finance Live to discuss the fallout of the FTX collapse and how it's impacted the crypto space for investors.
Markets are never easy to navigate, no matter how skilled or experienced you are as a trader. Crypto trading is even more stressful than other asset classes due to the 24/7 market that never sleeps…
“Payment must be made in cash or legal tender,” noted the Labor Department after penalizing the offending Chick-fil-A.
(Bloomberg) — The crowd of hundreds roared in Mandarin as the gull-winged two-seater aircraft rose and hovered roughly 30 meters (100 feet) above their heads, before smoothly lowering back down to earth. “Make us Chinese proud in Dubai!” several of the more enthusiastic shouted in unison.Most Read from BloombergChina Is Likely Seeing 1 Million Covid Cases, 5,000 Deaths a DayDonald Trump’s Taxes Reveal Big Losses: What We Learned So Far, in ChartsBankman-Fried Released on $250 Million Bond in FT
MOSCOW (Reuters) -The rouble clawed back some of this week's hefty losses after sinking to a near eight-month low in a volatile session on Thursday, as the prospect of a favourable month-end tax period mitigated concerns over sanctions on Russian oil and gas. By 1641 GMT, the rouble was up 2.9% against the dollar at 68.95 after earlier hitting 72.6325, its weakest since April 28, which had taken monthly losses to more than 15%. Russia will start buying yuan on the market next year if oil and gas revenues meet expectations, two sources told Reuters, a report confirmed by Finance Minister Anton Siluanov later on Thursday.
Orthogonal defaulted on $36 million of loans on decentralized finance (DeFi) protocol Maple Finance earlier this month after it misrepresented its losses from the FTX implosion.
The rate for the average 30-year fixed mortgage slipped to 6.27% from 6.31% the week prior, according to Freddie Mac.
(Bloomberg) — The US Securities and Exchange Commission is just getting started with its crackdown on crypto firms that refuse to abide by its rules.Most Read from BloombergChina Is Likely Seeing 1 Million Covid Cases, 5,000 Deaths a DayDonald Trump’s Taxes Reveal Big Losses: What We Learned So Far, in ChartsBankman-Fried Released on $250 Million Bond in FTX CaseChina to Cut Quarantine for Overseas Travelers From Next MonthUS Stocks Snap Two Days of Gains; Dollar Rises: Markets WrapSEC Chair Ga
As Sam Bankman-Fried is returned to the U.S., the impact of the FTX bankruptcy appears to be haunting the sector.
Euro zone governments will have to charm private buyers to step in and buy 400 billion euros of additional debt next year, which will keep the bloc's battered bond markets under pressure as the European Central Bank further unwinds its support. The ECB, effectively a guaranteed debt buyer since it launched quantitative easing (QE) in 2015, even hoovering up all the new bonds governments sold from at least 2019 to 2021, will start offloading its holdings. As governments scramble to soften the blows from soaring energy prices, they require extra funds.
Bengals defensive end Trey Hendrickson explains how he played through a broken wrist
The University of Idaho will be bolstering its security presence on campus and adding several services for students returning to school for their spring semester, as investigators hunt for answers in the still-unsolved Moscow murders.
Rare vintage spirits and aged liqueurs are sourced from around the world and across the decades, at Michelin-starred Manzke.
Author
Administraroot
Related Posts
