Trillions in value has been wiped out from the crypto sector this year on rising interest rates and exacerbating worries of an economic downturn.
The company’s shares, which have lost roughly 98% of their value so far in 2022, fell another 14% in premarket trading.
In a statement on Wednesday, Core Scientific said its creditors have also agreed to provide up to $56 million in debtor-in-possession financing.
One of the largest creditors of Core Scientific, B. Riley Financial Inc, had offered $72 million last week to avoid the bitcoin miner’s bankruptcy.
In its bankruptcy petition, Core Scientific said it has $1 billion to $10 billion in assets and liabilities, and creditors between 1,000 and 5,000.
Core Scientific went public through a merger with a blank-check company in a deal that valued the miner at $4.3 billion.
Bitcoin miners have been under severe pressure as their profitability dropped amid a slump in cryptocurrency prices and soaring energy rates.
Core Scientific was also impacted by litigation with Celsius Networks LLC and its affiliates.