"If this BTC mining company goes bankrupt, can the price of BTC be maintained?"
The world's largest publicly traded cryptocurrency miner and IT service management company, US-based Core Scientific has reportedly filed for Chapter 11 bankruptcy in Texas this Wednesday morning.
Core Scientific also couldn't escape from being a victim of bankruptcy following the destruction of the crypto market which caused energy prices to skyrocket and the occurrence of cash problems.
This follows because the company needs high-end machinery and hardware including electricity to continue the mining process of some proof-of-work (PoW) digital assets such as Bitcoin (BTC).
Although Core Scientific has a positive cash flow, the company is still unable to pay the financial debt for the equipment they use.
However, it was informed that Core Scientific will still continue its operations with the majority of the company's debt holders even if it is in a bankruptcy situation.
Judging from Core Scientific in early October, shareholders who invested in the company are likely to suffer some significant losses in the near term while equity holders are the opposite.
In context, the company is the largest provider of blockchain infrastructure that has operations in various locations such as North Dakota, North Carolina, Georgia and Kentucky.
It is also well known that over the last year, Core Scientific's share price has plummeted by 99%, losing $4 billion in value.
