Bitcoin miner Core Scientific’s stock has reportedly increased around 200% in the last four days, post the December 14, 2022, financing proposal from a current creditor to prevent the firm’s bankruptcy, as reported by Cointelegraph.
According to Cointelegraph, on December 12, 2022, shares of the miner had a valuation of 13 cents before rising to 40 cents as the market closed on December 15, 2022. It is believed that a gain of 198% happened. Insights from Marketbeat, a financial media firm, stated that traders acquired 6,572 call options on December 15, 2022. Reportedly, the number was 136% greater than the average volume of 2,780. Certain Bitcoin community-based members were also purchasing shares with the aim to gain high returns, based on the firm’s survival in bear market.
On the basis of information by Cointelegraph, Core Scientific went through an underwhelming phase in 2022, and the price is 95% lower than what it was at the year’s beginning in spite of gains. On December 14, 2022, financial services platform B Riley sent a letter to Core’s shareholders and outliners, for a $72 million financing plan for the miner’s prevention of Chapter 11 bankruptcy. It’s been recommended by B Riley that financing will give Core two years worth of operational cash, and that the miner can generate annual earnings worth $165 million at a $18,000 Bitcoin price, with an additional $20 million for each $1,000 price increase.
Moreover, Cointelegraph noted that Core sustained market downturn implications and filed an October 26, 2022, report over low BTC price, high electricity prices and a refusal from bankrupt cryptocurrency lender Celsius’ repayment of a $2.1 million loan.
(With insights from Cointelegraph)