Core Scientific Bankruptcy Risk
The likelihood of Chapter 11 bankruptcy for Core Scientific increases if BTC prices decline further.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"However, if BTC price continues to drop, possibly below $70,000 over the coming weeks, amid rising volatility, a fresh capitulation could be confirmed."
"In the past two days, BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) has led spot Bitcoin exchange-traded funds (ETFs) and other United States-based institutional investors in renewed selling pressure, as Finbold reported."
"For now, and in either case, we are looking for marginal lower prices for the short term, then a bounce back to resistance followed by -at least- another leg lower."
"Both companies filed for Chapter 11 bankruptcy last year amid the crypto bear market."
""But if Bitcoin’s price rises, the cycle of short-term loans and cascading crashes may continue once more.""
"'Still, without knowing how discussions are going with CORZ's creditors, we think a scenario where CORZ has to file for Chapter 11 protection has to be taken seriously, especially if BTC prices decline further from current levels.'"