Just over a year after the crypto winter sent bitcoin miner Core Scientific spiraling into bankruptcy, the Texas-based company is back on the Nasdaq. Trading is scheduled to resume Wednesday morning.
Core, which has operations in five U.S. states — Texas, North Dakota, North Carolina Georgia, and Kentucky — mines for bitcoin and other cryptocurrencies by packing data centers full of specialized computers that crunch math equations to validate transactions and create new tokens. The process requires expensive equipment, technical expertise and a lot of electricity.
As recently as 2021, Core was one of the largest publicly traded crypto mining firms in the U.S., hitting the market in July of that year via a special purpose acquisition company in a deal that valued it at roughly $4.3 billion. However, bitcoin lost over 60% of its value in 2022, meaning all that digital currency Core was producing was suddenly worth a lot less while operating costs remained high.
Without sufficient cash on hand to repay the financing debt owed on equipment it was leasing, Core was forced to enter bankruptcy in December 2022. The stock had fallen more than 98%.
“When bitcoin prices declined and power prices increased, obviously that hurt our levered free cash flow position, as well as hurt our balance sheet, since we were carrying bitcoin on balance sheet,” Core CEO Adam Sullivan told CNBC in an interview.
Rather than liquidating, Core continued to operate and reached a deal with senior security noteholders who hold the bulk of the company’s debt.
The restructuring plan announced Tuesday has slashed $400 million in debt from Core’s balance sheet by “converting equipment lender and convertible note holder debt to equity,” the company said in a statement.
Core said the new credit facility along with projected operating cash flow will allow the company to “emerge and continue executing its multi-year growth plan.”
“We went through a very successful Chapter 11 bankruptcy process,” Sullivan said. “It accomplished exactly what we wanted to accomplish, which was reducing debt and giving us time to pay down any remaining debt on our balance sheet over the course of five years.”
Also helping Core as it reenters the public market is an expansive footprint of mines across the country, and investors’ renewed enthusiasm toward bitcoin, which jumped 150% in 2023.
Even in bankruptcy, Core invested in developing its infrastructure. In 2023, the company minted 13,762 bitcoin from its fleet of mines, or around $540 million at the token’s current price. That doesn’t include the profit Core generates from mining coins on behalf of other companies.
Core is in the process of deploying tens of thousands of more mining rigs with the goal of increasing its capacity by more than 50% over the next four years.
“Our focus is not going to be on the market leadership position, it’s going to be on being the most efficient bitcoin mining company and looking at all of our assets inside of our portfolio, so that we can ensure that we’re refining power into the highest value compute that we can,” he said.
The public markets have been going big in mining since bitcoin started rebounding. Marathon Digital soared more than 590% in 2023 while Riot Blockchain jumped more than 350% and CleanSpark gained over 400%.
Chardan Research said in a note on Jan. 8 that Marathon’s “acquisition of hosting facilities signals a shift in management’s strategy from asset-light to owner-operator,” a move that it called a “meaningful improvement.”
The halving, which happens roughly every four years, is written into bitcoin’s code and is designed to stave off inflation. Though it will immediately impact miner profits, it’s also historically proven to be a catalyst for a run-up in the price of bitcoin. During the crypto market’s previous bull market run, the world’s largest cryptocurrency rose more than 560%.
There are also new potential opportunities for miners to collect fees, as a startup ecosystem is built on top of bitcoin’s base chain, Bernstein said in a note on Jan. 17.
“It is not surprising that listed U.S miners are investing aggressively to ‘land grab’ a higher share” of the $900 billion bitcoin network, the analysts wrote. The firm added that bitcoin miners are “best positioned to benefit from growing institutionalization and financialization of bitcoin,” including the buildout of the bitcoin-based payment infrastructure called the Lightning Network, as well as the rising popularity of nonfungible tokens and ordinals minted on bitcoin.
“We expect 2024 to be a break-out inflection year for crypto,” Bernstein analysts wrote. “We recommend achieving Bitcoin exposure via Bitcoin miners.” The firm said Riot and CleanSpark are its preferred picks.
Slate Auto, a new EV startup backed by Jeff Bezos, has poached a key Tesla manufacturing leader to build its electric pickup truck factory in Indiana.
Napoleon Reyes is a US Marine from Indiana who got a degree in mechanical engineering from Purdue after leaving the force.
He then worked a few years at Subaru and Wabash before joining Tesla’s manufacturing team at the Fremont Factory in 2020.
There, he became part of the Model Y production ramp and was quickly promoted to lead the Model Y General Assembly in Fremont in 2022.
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Reyes led Model Y GA, one of the most critical parts of vehicle manufacturing, for more than a year before being promoted again to lead new pilot processes at the factory.
Most recently, he led the launch of the general assembly line for the Model Y refresh.
The new engineering manager announced this week that he is leaving Tesla to join Slate:
A bit late on the post but after nearly 5 years working at Tesla in Fremont, I made the difficult decision to leave the Company and move closer to home with my family. It was an incredible experience being part of multiple line expansions and multiple Model Y program launches. Leading and managing the Model Y Refresh launch for GA in Fremont this year tested me professionally however we ultimately succeeded due to our amazing cross functional team collaboration. It’s been an absolute pleasure working with such great people, and I will forever be proud and thankful for everything we accomplished together.
I will be taking on a new role as Senior Manager, Plant Vehicle Engineering at Slate Auto in Warsaw, In.
The company raised over $700 million through two rounds of investments from several different investors, including Jeff Bezos. It is currently raising more, which basically guarantees that it will be able to reach production.
The startup acquired a former printing plant in Warsaw, Indiana. It is currently converting to manufacture its electric pickup with a team from legacy automakers and also several former engineers and leaders from Tesla.
Rich Schmidt, an early Tesla manufacturing director, is the head of manufacturing.
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Genesis is preparing to shake things up with its most luxurious SUV yet, the GV90. Thanks to a new patent filing, we are getting a detailed look at how its Rolls-Royce-style coach doors will work.
New patent reveals Genesis GV90 coach door system
When Genesis first unveiled the full-size SUV at the NY Auto Show last March, it wasn’t the stunning design or advanced tech that caught everyone’s attention. It was the coach doors.
Although we were worried it wouldn’t make it to the production model, like many concepts, the Genesis GV90 will be offered with coach doors.
The ultra-luxe electric SUV was first caught with coach doors earlier this year on a car carrier in South Korea. Just last month, the GV90 was spotted in California with a hinge at the rear to open the coach doors.
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After several new patents were filed with the United States Patent and Trademark Office for new door latching devices, we are getting a sneak peek at how they are expected to work.
The patents, titled “Cinching Device For Door Latches in Vehicle,” and “Door Latch Device for Vehicles,” give a pretty detailed explanation of how the Genesis GV90’s coach doors will operate. The “Door Latch Device” uses a door striker on the lower side of the door, which is opened or closed by a hinge unit.
Unlike traditional doors, which use the B-pillar for support, the device is attached directly to the door itself, allowing for hinge-like movement.
The cinching device works in a similar way. It’s also attached to the door and part of the vehicle. However, unlike most of its kind, Genesis found a way to use a single cinching device to control multiple units. Again, the device is used for B-pillarless doors that swing open.
Genesis already said that B-pillarless coach doors are now feasible in production vehicles. The patent reveals a glimpse into how the luxury automaker could make it a reality.
Genesis Neolun ultra-luxury electric SUV concept (Source: Genesis)
Although the Genesis GV90 is expected to be offered with coach doors, they will likely not be standard. Other variants, with traditional door handles, have also been spotted testing in the US and South Korea.
Genesis is expected to launch the GV90 in mid-2026. It will be built at Hyundai’s Ulsan plant in South Korea. The flagship Genesis SUV is scheduled to debut on Hyundai’s new eM platform, which the company said will “provide 50% improvement in driving range.” It will also be loaded with the latest technology, software, connectivity, and Level 3 or higher autonomous driving capabilities.
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the launch of the Tesla Model YL, more Tesla probes and lawsuits, new Nissan Leaf pricing, and more.
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