SummaryCore Scientific has disclosed that it will not be paying equipment-related debt obligations that are coming due in late-October and early-November.The mining sector as a whole has seen profitability collapse to the lowest level ever.CORZ has been selling down its Bitcoin stack for months and is clearly in a very dangerous position financially.This morning Core Scientific (CORZ) filed an 8-K with the SEC that contained highly troubling language. After detailing some of the liquidity problems in the Bitcoin (BTC-USD) mining industry generally speaking, CORZ disclosed that it will not be servicing its equipment-related debt obligations that are due over the next couple weeks:the Board has decided that the Company will not make payments coming due in late October and early November 2022 with respect to several of its equipment and other financings, including its two bridge promissory notes. As a result, the creditors under these debt facilities may exercise remedies following any applicable grace periods, including electing to accelerate the principal amount of such debt, suing the Company for nonpayment or taking action with respect to collateral, where applicableThis is a very bad sign yet not totally surprising given the abysmal macro setup that the broad Bitcoin mining industry has been experiencing over the last year or so.Mining Industry WoesBy design, it gets more difficult to mine Bitcoin over time. This difficulty ...
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