World's Largest Bitcoin Miner Suspends Payments
The world’s largest Bitcoin (BTC) miner, Core Scientific, has filed an 8-K form with the SEC (Securities and Exchange Commission). As per the filing, the firm will suspend payments that are due in the next few days due to depleting cash reserves. The firm expected its fiat reserves to completely deplete by the end of the year, or sooner. The SEC filing highlighted a “prolonged decrease in the price of bitcoin , the increase in electricity costs , the increase in the global bitcoin network hash rate, and the litigation with Celsius Networks LLC and its affiliates” as reasons for its decision. Is the Bitcoin miner taking steps to counter its falling reserves? The company’s management has been working hard to lower monthly costs. They have postponed building expenses, cut and postponed capital expenditures, and are trying to boost hosting income. The Bitcoin mining company is also investigating many possible strategic options with regard to the capital structure of the compa