Core Scientific, a major publicly traded crypto mining company in the US, raised the possibility of bankruptcy on Friday in a statement filed with the SEC (Securities and Exchange Commission). Blockchain.News reported on the matter.

The Bitcoin miner sent out a warning about his inability to pay his creditors after saying he may need to file for bankruptcy protection if he fails to improve his financial situation.

Core Scientific said it anticipates existing cash finances to dry up by the end of the year or possibly sooner. The firm also revealed that it will not make payments on its debt due in late October and early November.

Core Scientific admitted that it could be sued as a result of late payments. The company indicated in the filing that its creditors are therefore free to sue the company for non-payment, take action regarding collateral and choose to accelerate the principal amount of said debts.

The last report shows that Core Scientific owes around $1 billion to a number of companies, including crypto lender BlockFi, investment banking firm B. Riley, crypto financial services firm NYDIG, Anchor Labs, the parent company of the digital asset bank Anchorage Digital, and Barings LLC, an international investment management firm owned by MassMutual.

The largest loans and notes obtained by Bitcoin miner from B. Riley, MassMutual Barings, and BlockFi were $75 million, $65.6 million, and $60.7 million, respectively, as of June 30.

Core Scientific took out a large number of loans to finance its infrastructure and hardware upgrades, beginning in the second half of 2021, when Bitcoin prices were on the rise (peaking at nearly $70,000 in November) and when miners were competing to grow their operations. amid the recent market downturn that started earlier this year.

Core Scientific said its operating performance and liquidity have been severely impacted by Bitcoin’s prolonged price decline, rising electricity costs, and rising hash rate of the global Bitcoin network as more miners compete for the reward.

In the filing, Core Scientific also blamed Celsius Networks LLC’s default payments for its financial problems. Although selling most of its Bitcoin in June, the company is down to $26.6 million in cash.