Shares of the beleaguered miner were just over 13 cents down on Dec. 12, before rising to nearly 40 cents by the market close on Dec. 15 — an increase of 198%.

Five-day chart showing Core Scientific share price on Nasdaq. Source: TradingView
According to financial media firm Marketbeat, traders acquired 6,572 call options on December 15, an increase of 136% from average volume of 2,780, indicating that many are bullish on the stock and betting that the price will continue to rise.

Some members of the Bitcoin community have also been acquiring shares, hoping for a big return if the financing plan is implemented and the company can survive during the bear market.

The hike can be the beginning of a transformation, or just the leap of a dead cat. Core Scientific has been hit with a string of bad news throughout 2022 and despite recent gains, the price is still 95% lower than it was at the start of the year.

On December 14th, I wrote B. Riley, the financial services platform, wrote a letter to Core shareholders and lenders outlining a $72 million financing plan that it believes is sufficient to prevent the miner from being forced to file for Chapter 11 bankruptcy.

If the deal is accepted, the first $40 million will be funded “immediately, without any contingency,” while the remainder of the money will be released if Core agrees to suspend payments to equipment lenders until the bitcoin price returns above $18,500 — a slump in the price of the cryptocurrency. Leading since November 9.

B. Reilly suggests that the funding will provide Core with two years of operating cash, and notes that their analysts expect the miner to generate annual profits of about $165 million at Bitcoin’s $18,000 price, with an additional $20 million for every $1,000 price increase.

Related: How Tough Is This Bear Market For Bitcoin Mining? Watch the market talks on Cointelegraph

Core was hit hard by the broader market downturn and submitted a report on Oct. 26 citing falling BTC, soaring electricity prices, and bankrupt cryptocurrency lender Celsius’s refusal to repay a $2.1 million loan as reasons for it to default on some of its loans. Debts.

The bad news continued on November 22, when the miner admitted in a quarterly report that its cash reserves might run out by the end of 2022, and it didn’t think it would be able to raise money through financing or capital markets given the current market. Terms.

Source: CoinTelegraph