Core Scientific ( NASDAQ: CORZ ) stock rocketed more than two-fold in Thursday trading, a surprising move, seeing that the cryptocurrency miner filed for Chapter 11 bankruptcy a day earlier. Still, the stock was trading at ~$0.12 Wednesday afternoon, nearly 99% lower than its $10.55 closing price on Dec. 22, 2021. On Wednesday, CORZ dropped almost 76%. It has been trading below $1 since Oct. 27, when it first warned that it might file for Chapter 11 . Often a company's existing common stock is wiped out when it reorganizes under Chapter 11. But that may not be the case with Core Scientific's ( CORZ ) restructuring. The company said late Wednesday it expects to enter a restructuring support agreement with noteholders that represent more than 70% of its convertible notes. The proposed agreement will allow existing common stock holders to get a percentage of stock and warrants in the reorganized company. "Both the common stock and the warrants will enable stakeholders to capture a share of the company's future growth," the company said. The existing noteholders, though, will get a "significant majority" of Core Scientific's ( CORZ ) common stock after the restructuring. The proposed restructuring contemplates erasing hundreds of millions of dollars of the company debt and reducing its annual interest expense by tens of millions of dollars, it said. In the filing, CORZ said it had net debt of $879M. Also on Wednesday, Core Scientific ( CORZ ) Chief Mining Officer Russell Cann said the the company is exploring the sale of up to a gigawatt worth of its mining facilities under development.
