Core Scientific is in a plan-stage chapter 11 posture, with its restructuring centered on a filed disclosure statement and related claim and adversary litigation rather than a sale process in the provided docket set. The company and affiliated debtors filed chapter 11 on December 21, 2022, after liquidity fell to roughly $4 million amid a sharp bitcoin-price decline, materially higher power costs, exposure to Celsius Mining unpaid power charges, and a capital structure that included more than $550 million of secured convertible notes and about $275 million of equipment financing, much of it alleged to be undersecured, as described in the Michael Bros first-day declarationDkt. 5.
The case began as an operating restructuring of a large digital-asset mining and hosting platform, not a simple liquidation. Core Scientific entered bankruptcy while operating eight data centers, about 150,000 operational self-mining rigs, and more than 85,000 hosted customer miners, and the first-day narrative tied the filing to commodity-price pressure, power-cost inflation, customer counterparty distress, and near-term funded-debt pressure. Its prepetition debt stack included April and August secured convertible notes maturing in April 2025, equipment financings and leases secured by miners, non-mining financings and leases, bridge notes, and mechanics and materialmen lien exposure, later summarized in the Disclosure StatementDkt. 1410.
The restructuring path reflected negotiations with noteholders and a balance-sheet deleveraging strategy. The first-day declaration described an RSA with an ad hoc noteholder group, DIP financing commitments of up to $56 million, contemplated equitization of convertible notes, and issuance of $75 million in new second-lien notes, while the later disclosure statement became the central plan-stage document for evaluating creditor treatment and the go-forward capital structure. The claims picture in the provided data remains concentrated in secured debt, with nine secured claims totaling about $816.8 million and six unsecured claims totaling about $19.5 million.
The live posture in the context pack also includes litigation over disputed counterparty and claim issues. Core Scientific filed an adversary complaint against Sphere 3D and Gryphon Digital Mining tied to damages, declaratory relief, and objections to proofs of claim Nos. 358 and 359 in the Sphere/Gryphon complaintDkt. 1, and Core Scientific Specialty Mining later filed a damages and declaratory-relief complaint against GEM Mining connected to GEM’s administrative-expense request in the GEM Mining complaintDkt. 1. No near-term hearing dates are included in the provided context pack.
