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Shares of Bitcoin (BTC) miner Core Scientific have soared nearly 200% over the past four days after a December 14th positive acceptance of a financing proposal from an existing creditor that hopes the company can avoid bankruptcy.

Shares in the embattled miner were sitting at just over 13 cents on December 12, before the market closed on December 15, rising to almost 40 cents, a 198% gain.

A five-day chart showing Core Scientific’s stock price on the Nasdaq. Source: TradingView

Traders bought 6,572 call options on Dec. 15, up 136% from average volume of 2,780, according to financial media firm Marketbeat, indicating many are bullish on the stock and betting the price will continue to rise.

Some members of the Bitcoin community have also been snapping up shares, hoping for huge returns if the funding plan goes through and the company survives the bear market.

A rally can be the start of a turnaround or just a dead cat pouncing. Core Scientific has been plagued by bad news throughout 2022, and despite recent gains, the price is still 95% below where it was at the start of the year.


If the deal goes through, the first $40 million will be funded “immediately, with zero contingencies,” while the remaining funds will be disbursed if Core agrees to stop making payments to equipment lenders until the price of Bitcoin exceeds $18,500. The price of the leading cryptocurrency has been lower since November 9.

B. Riley suggests that the funding will provide Core with two years of operating cash, and notes that their analyst predicts that the miner could earn roughly $165 million a year at an $18,000 bitcoin price, and an additional $20 million every 1,000 dollars to increase the price. .

Related to: How hard is this bear market for bitcoin mining? Check out the market chatter on Cointelegraph

Core has been hit hard by the broader market downturn and filed a report on October 26 citing the low price of BTC, high electricity rates and bankrupt crypto-lender Celsius’ refusal to repay a $2.1 million loan as reasons why may default on some of its dues. debts.

The bad news continued on Nov. 22 when the miner admitted in a quarterly report that its cash reserves could run out by the end of 2022, and it did not believe it would be able to raise funds through financing or capital markets given the current market. conditions.