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The World’s Biggest Bitcoin Miner Experts to go Bankrupt

By February 6, 2023No Comments

Recently, the largest Bitcoin mining firm, Core Scientific, filed with the Securities and Exchange Commission to warn that it is on the verge of bankruptcy. The announcement set off a freefall in the company’s stock, with shares dropping 78% in just 24 hours.

However, the news doesn’t seem to have stopped the Bitcoin price, which continues to climb. And, if you want to learn more about investment in digital assets or Cryptocurrencies, visit this link.

Compute North

According to the company’s statement, Compute North, the largest bitcoin miner, foresees bankruptcy. The company filed for Chapter 11 bankruptcy protection, allowing it to keep operating while trying to repay its creditors. As of writing, bitcoin is trading at $19,085, down 3.5% over the last seven days.

The financial problems at Compute North stem from falling bitcoin prices and rising energy costs. The company lost $4 billion in cryptocurrency mining loans this year. In addition, the company’s chief executive, David Perrill, has resigned as CEO but will remain on the board.

The company filed for chapter 11 bankruptcy in the Southern District of Texas to stabilize its business. It owes creditors approximately $500 million. In its filing, the company said it needs to pay off its debts to rebuild. The company plans to raise $385 million for new data centers in Texas and expects to keep running its operations during bankruptcy.

In the meantime, it has been putting money into building out its Bitcoin mining farms in Texas. Some teams have been working on the projects for over a year. They have invested tens of millions of dollars in infrastructure. They then had to go through the administrative process of connecting to ERCOT; they were trying to turn their ASICs on to finish the project. The industry is playing a game of “who can hold their breath the longest.”

Core Scientific

Core Scientific has lost a significant portion of its value and may have to file for bankruptcy protection. While the company holds around 24 Bitcoins and $26.6 million in cash, its stock has lost nearly 80% over the past five days. While the stock’s value was over $14 in early June, it’s now down to less than $0.18 a share. Core Scientific has also lost money due to soaring energy costs.

In its most recent filing with the Securities and Exchange Commission, Core Scientific says it will miss payments this month and may file for bankruptcy. The company is currently in talks with law firms for bankruptcy protection or restructuring. The company is blaming its depleted finances on the continued fall in bitcoin’s price and the high cost of electricity.

Celsius Networks LLC

Celsius Networks LLC, the largest bitcoin mine in the world, is on the brink of bankruptcy. After freezing customer withdrawals in June, the company has announced it will issue “IOU” cryptocurrency instead. Celsius claims to have managed billions of dollars worth of customer assets. But recent investigations have revealed that the company took risks and took on more significant risks than investors were willing to take. In addition, the company did not use sophisticated software to track customer assets. It followed all of this data manually on an Excel spreadsheet.

Celsius has raised more than $850 million in investment from investors and counts WestCap and Caisse de depot et placement du Québec among its backers. However, the company faces a $1.2 billion hole in its balance sheet. This situation has prompted some analysts to compare Celsius’s current state to the collapse of Lehman Brothers, a central Wall Street bank that collapsed in 2008, leading to the mortgage debt crisis and the global financial crisis.


At the moment, Bitcoin is highly profitable for Whinstone. It has ultralow electricity costs of 2.4 cents per kilowatt hour, and its labor, equipment, and other costs average $15,000 per coin. But when it’s full-up and operational by late next year, Whinstone expects to earn 80% Ebita margins on sales of around $600 million. Whinstone will be one of the world’s biggest publicly traded mining companies if that happens.

Whinstone is undergoing an expansion project to nearly double its Bitcoin mining capacity. The expansion will include four new buildings totaling 240,000 square feet and adding about 400 MW of power to the site. When completed, the facility will be the world’s most important Bitcoin mining site.

The company’s initial capital is estimated at $150 million. But despite the massive cost of the mining operations, Whinstone is still profitable – at least as of mid-November. The Electric Reliability Council of Texas, which runs the electricity grid in Texas, pays Whinstone for quitting power. But the project is not without its challenges.


The largest bitcoin miner in the world is facing financial trouble. In the past 24 hours, Core Scientific, the company behind the largest Bitcoin network in the world, has disclosed that it is on the verge of bankruptcy. The company blames the price decline of Bitcoin and the rising cost of electricity as the main reason it cannot make debt payments. As a result, it has sold off most of its BTC.

The company’s management has cut back on payments to creditors and is increasing hosting revenues. This news has sent the company’s stock plunging more than 80%, from $1.08 to $0.22, and some believe the company will file for bankruptcy.

Jerico Saquing

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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