Core Scientific: a loss in Q3 and doubts about prospects

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Ultramining.com

16:52 Nov 23, 2022

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Core Scientific: a loss in Q3 and doubts about prospects

Miner reported a loss of $434.8 million for the third quarter. Moreover, the company expresses doubts that it will be able to continue operations without attracting additional liquidity.

The report, which was sent to the SEC, stated:

The current market conditions not only increase risks but also reduce the availability of funding sources. As such, based on the company's financial condition, there is doubt that operations can continue in the coming year.

According to the management claims, steps have been taken to decline costs and increase revenues. The company has warned of possible depletion of reserves and has stopped meeting some obligations. However, Core Scientific does not see this as a possibility of default but only the prospect of increased debt service costs.

The miner also admits to the additional costs of lawsuits. The company's stock expectedly fell after the form was filed with the SEC, but then corrected to $0.15.


Source: MarketWatch


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