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Dec 21 (Reuters) – Core Scientific Inc ( CORZ.O ), one of the largest publicly traded U.S. crypto mining companies, will soon file for Chapter 11 bankruptcy protection, CNBC reported, citing a person familiar with the matter.

The company will file for bankruptcy protection in Texas early Wednesday but will not be liquidated, a report issued late Tuesday said, adding that it would continue to operate as normal while reaching an agreement with senior security noteholders.

The development comes after one of the largest creditors of Core Scientific B. Riley Financial Inc ( RILY.O ) offered $72 million last week to avoid bankruptcy of the bitcoin miner.

Core Scientific did not immediately respond to Reuters’ request for comment outside business hours.

The Austin, Texas-based miner, which operates in Georgia, Kentucky, North Carolina and North Dakota, mines digital assets, including coins such as Bitcoin and Ethereum.

Bitcoin miners have been under severe pressure as their profitability has declined due to falling cryptocurrency prices and rising energy costs. Extreme market conditions have also led to the bankruptcy of other major cryptocurrency lenders, such as Celsius Network and Voyager Digital Ltd.

Core Scientific has also been affected by a dispute with Celsius Networks LLC and its subsidiaries.

Reporting by Siddharth Jindal and Maria Ponnejat in Bengaluru; edited by Uttaresh.V

Our standards. Thomson Reuters Trust Principles.

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