Investment banking firm XMS Capital Partners’ managing director, Adam Sullivan, has been appointed as the new president of bankrupt cryptocurrency mining company Core Scientific. In a motion filed on April 10 with the US Bankruptcy Court for the Southern District of Texas, the debtors stated that Sullivan will be responsible for handling financial and strategic matters, including customer, supplier, and creditor relationships, as well as assisting with the negotiation of a plan of reorganization.
The company has cited the low price of Bitcoin, increased electricity costs, and litigation with crypto lender Celsius as reasons behind the depletion of their existing cash resources by the end of 2022. Despite disruptions to its supply of rigs, the company continues to mine BTC amid its bankruptcy proceedings.
