Core Scientific, one of the biggest bitcoin (EXANTE: Bitcoin) mining players in the crypto market, has notified the US Securities and Exchange Commission (SEC) it might run out of cash by the end of the year.
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According to a report by Bloomberg, the Austin-headquartered company wrote in its recent filing to the SEC that its operating performance and liquidity have been damaged not only by the crypto winter, but also due to a rise in electricity costs and increased competition. Core Scientific also added the ongoing litigation with bankrupt Celsius Networks had also affected the company's business.
After the news broke, Core Scientific's plunged 75% to $0.25, crashing the company's market capitalization below the $90 million mark.
In August, Core Scientific reported it had suffered a net loss of $861.7 million in April-June against revenue of $164 million. The company's boss, Mike Levitt, assured investors though that the Core Scientific remained "well positioned to navigate current market conditions and emerge from these markets a larger, stronger and more profitable company."
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